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Market structure, trade liberalization and the GATS

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  • Francois, Joseph
  • Wooton, Ian

Abstract

In this Paper we examine the interaction between the different modes of market access commitments in services (cross-border and establishment) market structure, and regulation. In this context, we focus on the impact of improved domestic market access for a foreign service provider on a domestic service market. We work with a model where the domestic industry is assumed to be imperfectly competitive and, as a result of domestic regulation, is able to act as a cartel. We also examine the incentives for the domestic firms to accommodate the entry of the foreign firm by inviting it to join the cartel.

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Bibliographic Info

Article provided by Elsevier in its journal European Journal of Political Economy.

Volume (Year): 17 (2001)
Issue (Month): 2 (June)
Pages: 389-402

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Handle: RePEc:eee:poleco:v:17:y:2001:i:2:p:389-402

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Web page: http://www.elsevier.com/locate/inca/505544

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References

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  1. Hill, T P, 1977. "On Goods and Services," Review of Income and Wealth, International Association for Research in Income and Wealth, vol. 23(4), pages 315-38, December.
  2. Cho, Yoon Je, 1988. "Some Policy Lessons from the Opening of the Korean Insurance Market," World Bank Economic Review, World Bank Group, World Bank Group, vol. 2(2), pages 239-54, May.
  3. Joseph Francois & Ian Wooton, 2000. "Trade in International Transport Services: The Role of Competition," Tinbergen Institute Discussion Papers 00-057/2, Tinbergen Institute.
  4. Markusen, James R, 1989. "Trade in Producer Services and in Other Specialized Intermediate Inputs," American Economic Review, American Economic Association, American Economic Association, vol. 79(1), pages 85-95, March.
  5. Hoekman, Bernard, 1992. "Conceptual and Political Economy Issues in Liberalizing International Transactions in Services," CEPR Discussion Papers, C.E.P.R. Discussion Papers 666, C.E.P.R. Discussion Papers.
  6. James R. Markusen, 1988. "Production, Trade, and Migration with Differentiated, Skilled Workers," Canadian Journal of Economics, Canadian Economics Association, Canadian Economics Association, vol. 21(3), pages 492-506, August.
  7. Francois, Joseph & Schuknecht, Ludger, 1999. "Trade in Financial Services: Procompetitive Effects and Growth Performance," CEPR Discussion Papers, C.E.P.R. Discussion Papers 2144, C.E.P.R. Discussion Papers.
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Cited by:
  1. Joseph Francois & Bernard Hoekman, 2010. "Services Trade and Policy," Journal of Economic Literature, American Economic Association, vol. 48(3), pages 642-92, September.
  2. Christen, Elisabeth & Francois, Joseph & Hoekman, Bernard, 2012. "CGE modeling of market access in services," Policy Research Working Paper Series 6106, The World Bank.
  3. Konan, Denise Eby & Maskus, Keith E., 2003. "Quantifying the impact of services liberalization in a developing country," Policy Research Working Paper Series 3193, The World Bank.
  4. Konan, Denise Eby & Van Assche, Ari, 2007. "Regulation, market structure and service trade liberalization," Economic Modelling, Elsevier, Elsevier, vol. 24(6), pages 895-923, November.
  5. Christen, Elisabeth & Francois, Joseph & Hoekman, Bernard, 2013. "Computable General Equilibrium Modeling of Market Access in Services," Handbook of Computable General Equilibrium Modeling, Elsevier, Elsevier.
  6. Francois, Joseph & Manchin, Miriam & Martin, Will, 2013. "Market Structure in Multisector General Equilibrium Models of Open Economies," Handbook of Computable General Equilibrium Modeling, Elsevier, Elsevier.
  7. George Verikios & Xiao-guang Zhang, 2001. "Global Gains from Liberalising Trade in Telecommunications and Financial Services," Others, EconWPA 0110005, EconWPA.

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