Market Structure in Services and Market Access in Goods
AbstractWe examine interaction between trade in goods and market power in domestic trade and distribution, developing a model that highlights this interaction. Theory points to an expected linkage between service sector competition and goods trade, one supported by econometrics involving import patterns of 21 OECD countries vis-à-vis 86 trading partners. This points to significant linkages between effective market access conditions for goods and the structure of the service sector. Because of the implied interaction, ignoring the structure of the domestic service sector may lead to a substantial underestimation of the direct impact of tariffs on trade flows.
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Bibliographic InfoPaper provided by Tinbergen Institute in its series Tinbergen Institute Discussion Papers with number 04-050/2.
Date of creation: 04 May 2004
Date of revision:
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Web page: http://www.tinbergen.nl
market access; services trade; trade liberalization; competition policy; imperfect competition; GATS;
Other versions of this item:
- Francois, Joseph & Wooton, Ian, 2005. "Market Structure in Services and Market Access in Goods," CEPR Discussion Papers 5135, C.E.P.R. Discussion Papers.
- Joseph Francois & Ian Wooton, 2005. "Market Structure in Services and Market Access in Goods," The Institute for International Integration Studies Discussion Paper Series iiisdp80, IIIS.
- F12 - International Economics - - Trade - - - Models of Trade with Imperfect Competition and Scale Economies; Fragmentation
- F13 - International Economics - - Trade - - - Trade Policy; International Trade Organizations
- F23 - International Economics - - International Factor Movements and International Business - - - Multinational Firms; International Business
This paper has been announced in the following NEP Reports:
- NEP-ALL-2004-05-26 (All new papers)
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