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Market Structure in Services and Market Access in Goods

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  • Francois, Joseph
  • Wooton, Ian

Abstract

We examine interaction between goods trade and market power in domestic trade and distribution sectors. Theory suggests a linkage between service-sector competition and goods trade, one supported by econometrics involving imports of 22 OECD countries vis-à-vis 69 exporters. This points to linkages between market access conditions for goods and the structure of the service sector. Competition in services affects the volume of goods trade. Additionally, because of interaction between tariffs and competition, the market structure of the domestic service sector becomes increasingly important as tariffs are reduced. Also, empirically service competition apparently matters most for exporters in smaller, poorer countries.

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Bibliographic Info

Paper provided by C.E.P.R. Discussion Papers in its series CEPR Discussion Papers with number 5135.

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Date of creation: Jul 2005
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Handle: RePEc:cpr:ceprdp:5135

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Related research

Keywords: GATS; market access; services trade; strategic competition policy; trade and competition; trade liberalization;

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  3. Marcelo Olarreaga & Çaglar Özden, 2005. "AGOA and Apparel: Who Captures the Tariff Rent in the Presence of Preferential Market Access?," The World Economy, Wiley Blackwell, vol. 28(1), pages 63-77, 01.
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Cited by:
  1. J. Francois & B. Hoekman & M. Manchin, 2005. "Preference Erosion and Multilateral Trade Liberalization," Tinbergen Institute Discussion Papers 05-073/2, Tinbergen Institute.
  2. Carolina Lennon, 2008. "Trade in services and trade in goods: differences and complementarities," Working Papers halshs-00586223, HAL.
  3. Francois, Joseph & Hoekman, Bernard & Manchin, Miriam, 2005. "Preference Erosion and Multilateral Trade Liberalization," CEPR Discussion Papers 5153, C.E.P.R. Discussion Papers.
  4. Hoekman. Bernard & Prowse, Susan, 2005. "Economic policy responses to preference erosion : from trade as aid toaid for trade," Policy Research Working Paper Series 3721, The World Bank.

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