Market structure and market access
AbstractThe authors examine an issue at the nexus of domestic competition policy and international trade, the interaction between goods trade and market power in domestic trade and distribution sectors. Theory suggests a set of linkages between service-sector competition and goods trade supported by econometrics involving imports of 22 OECD countries compared with 69 exporters. 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. Empirically service competition apparently matters most for exporters in smaller, poorer countries. The results also suggest that while negotiated agreements leading to cross-border services liberalization may boost goods trade as well, they may also lead to a fall in goods trade when such liberalization involves foreign direct investment leading to increased service sector concentration.
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Bibliographic InfoPaper provided by The World Bank in its series Policy Research Working Paper Series with number 4151.
Date of creation: 01 Mar 2007
Date of revision:
Markets and Market Access; Economic Theory&Research; Free Trade; Access to Markets; Trade Policy;
Other versions of this item:
- Joseph Francois & Ian Wooton, 2008. "Market Structure and Market Access," CESifo Working Paper Series 2239, CESifo Group Munich.
- Joseph F. Francois & Ian Wooton, 2007. "Market structure and market access," Economics working papers 2007-06, Department of Economics, Johannes Kepler University Linz, Austria.
- F12 - International Economics - - Trade - - - Models of Trade with Imperfect Competition and Scale Economies; Fragmentation
- F13 - International Economics - - Trade - - - Trade Policy; International Trade Organizations
- L16 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Industrial Organization and Macroeconomics; Macroeconomic Industrial Structure
- L80 - Industrial Organization - - Industry Studies: Services - - - General
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