How important to welfare and growth in developing countries are restraints on foreign providers of producer services? Limiting such services not only may limit growth but may hurt some of the very people - domestic skilled workers in such service sectors - those restraints are designed to protect

In this paper, the authors develop a 10-region comparative static computable general-equilibrium model of Russia to assess the impact of accession to the World Trade Organization on the regions of Russia. The model allows for foreign direct investment in business services and endogenous...