Assessing barriers to trade in the distribution and telecom sectors in emerging countries
We compute ad valorem equivalents (AVEs) for the regulation in three service sectors (i.e. fixed telecom, mobile telecom, distribution) applied by selected emerging countries. We start with qualitative information on the restrictions applied by each country in each sector on the basis of which we apply a multivariate statistical approach, to transform this qualitative data into a trade restrictiveness synthetic index (STRI). In a second stage we estimate the average impact of STRI on price cost margins, using a method avoiding the usual two-stage estimation. In the third stage, this impact is used to calculate the AVE of the STRI estimated in the first step. It is shown that the STRI has a significant effect on the price-cost margins of the individual firms only when controlled for Regional trade Agreements and exception to the MFN clause in the considered sector. Lastly, we compute tariff equivalents for the STRIs previously calculated using the estimated impact. More than half our AVEs are larger than 50% and one AVE out of six is above 100%.
(This abstract was borrowed from another version of this item.)
Volume (Year): 12 (2013)
Issue (Month): 01 (January)
|Contact details of provider:|| Postal: |
Web page: http://journals.cambridge.org/jid_WTR
References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Cowling, Keith & Waterson, Michael, 1976. "Price-Cost Margins and Market Structure," Economica, London School of Economics and Political Science, vol. 43(171), pages 267-74, August.
- Henk Kox & Hildegunn Kyvik Nordås, 2007.
"Services Trade and Domestic Regulation,"
OECD Trade Policy Papers
49, OECD Publishing.
- Nora Dihel & Ben Shepherd, 2007. "Modal Estimates of Services Barriers," OECD Trade Policy Papers 51, OECD Publishing.
- Novella Bottini & Mohamed Ali Marouani & Laura Munro, 2011. "Service Sector Restrictiveness and Economic Performance: An Estimation for the MENA Region," The World Economy, Wiley Blackwell, vol. 34(9), pages 1652-1678, 09.
- Stephen S. Golub, 2009. "Openness to Foreign Direct Investment in Services: An International Comparative Analysis," The World Economy, Wiley Blackwell, vol. 32(8), pages 1245-1268, 08.
- Khalilzadeh-Shirazi, Javad, 1974. "Market Structure and Price-Cost Margins in United Kingdom Manufacturing Industries," The Review of Economics and Statistics, MIT Press, vol. 56(1), pages 67-76, February.
- Mohamed Ali Marouani & Laura Munro, 2009.
"Assessing Barriers to Trade in Services in the MENA Region,"
OECD Trade Policy Papers
84, OECD Publishing.
- Mohamed Ali Marouani & Laura Munro, 2009. "Assessing Barriers To Trade In Services In The Mena Region," Working Papers 496, Economic Research Forum, revised Jul 2009.
- Jeffrey M. Wooldridge, 2003. "Cluster-Sample Methods in Applied Econometrics," American Economic Review, American Economic Association, vol. 93(2), pages 133-138, May.
When requesting a correction, please mention this item's handle: RePEc:cup:wotrrv:v:12:y:2013:i:01:p:57-78_00. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Keith Waters)
If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.
If references are entirely missing, you can add them using this form.
If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.
If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.
Please note that corrections may take a couple of weeks to filter through the various RePEc services.