Sources of Labor Force by Location of Employee’s Previous Residence

252
AFRICA
’
S SILK ROAD
:
CHINA AND INDIA
’
S NEW ECONOMIC FRONTIER
play a catalytic role in facilitating firms exports from Africa. However,
locally hired workers contribute to local sales. This is also quite intuitive because of their comparative advantage in knowledge of local markets and commercial practices.
Migration and Mode IV
Reducing between-the-border barriers to African-Asian trade and investment is also coming about through the flow of people. Indeed, there is increasing evidence that the cross-border movement of people is a complement to rather than a substitute for trade and investment flows.
The temporary movement of persons for delivery of services, so-called
Mode IV services delivery, was negotiated under the General Agreement on Trade in Services (GATS); see box 5.6. The agreement defined four possible modes for which services can be traded between members of the
World Trade Organization (WTO. The four are Mode I “cross-border supply (for example, the provision of architectural blueprints via fax Mode
II: consumption abroad (for example, tourism Mode III commercial presence which typically, though not always, means that FDI is part of the provision of the service (for example, establishment of a foreign law practice in the host country and Mode IV presence of natural persons”
(for example, a foreign computer software consultant).
Some free trade agreements (FTAs) contain provisions allowing the temporary entry of business professionals into the other country for the
TABLE 5.3

Download 5.17 Mb.

Share with your friends: