You can get the same effect by saving the selection to a channel and doing the operations with the channel's right click menu.
For an easier way, how about ?:
1) convert the selection into a path
2) shrink the selection and convert to a path
3) make sure both paths are visible
4) merge visible paths
But note that selections converted into a path are not always 100% accurate.
A third way of getting this shape is:
make a rectangular selection with rounded edges
convert into a path
stroke the path
The most accurate technique is probably getting
arakne's path shapes plug-in and use it to create a rectangle with rounded edges and then stroke the path