Cross-border labor mobility in information technology services: A quantitative approach to estimate protectionism in selected developed country markets

Abstract

This paper analyzes regulatory measures affecting cross-border labor movement (mode 4 of services trade) in Information Technology (IT) services for selected developed countries (Australia, Canada, UK and US). It contributes to the existing literature by developing a template for quantifying the qualitative nature of regulations affecting the mode 4 service trade. It constructs trade restrictiveness indices for assessing protectionism affecting the temporary movement of Indian IT professionals to these countries in the pre- and post-recession periods. It finds that developed country IT markets have become more protectionist after the recent financial crisis, mainly on account of stricter immigration measures in these countries.