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Trade and International Transport Services: An Analytical Framework


  • Soamiely Andriamananjara

    (U.S. International Trade Commission)


International Transport Services (ITS) play an important role in influencing international trade flows. This paper develops an analytical framework in which ITS costs are endogenously determined. It shows that ITS sector liberalization foster international trade very much the same way tariff liberalization does. From a political economy viewpoint, a unilateral liberalization of the sector may not always be politically feasible, and a multilateral agreement can help prop up support for reform. It is further argued that deregulation and competition policy reform are more likely to be feasible if undertaken jointly. (JEL F12, F23, L91)

Suggested Citation

  • Soamiely Andriamananjara, 2002. "Trade and International Transport Services: An Analytical Framework," International Trade 0211003, EconWPA.
  • Handle: RePEc:wpa:wuwpit:0211003
    Note: Type of Document - pdf; prepared on PC; pages: 29

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    References listed on IDEAS

    1. Brander, James & Krugman, Paul, 1983. "A 'reciprocal dumping' model of international trade," Journal of International Economics, Elsevier, vol. 15(3-4), pages 313-321, November.
    2. Deardorff, Alan V, 2001. "International Provision of Trade Services, Trade, and Fragmentation," Review of International Economics, Wiley Blackwell, vol. 9(2), pages 233-248, May.
    3. Joseph Francois & Bernard Hoekman, 2010. "Services Trade and Policy," Journal of Economic Literature, American Economic Association, vol. 48(3), pages 642-692, September.
    4. Francois, Joseph F & Wooton, Ian, 2001. "Trade in International Transport Services: The Role of Competition," Review of International Economics, Wiley Blackwell, vol. 9(2), pages 249-261, May.
    5. Carsten Fink & Aaditya Mattoo & Ileana Cristina Neagu, 2002. "Trade in International Maritime Services: How Much Does Policy Matter?," World Bank Economic Review, World Bank Group, vol. 16(1), pages 81-108, June.
    6. Patrick A. Messerlin & Jamel Zarrouk, 2000. "Trade Facilitation: Technical Regulations and Customs Procedures," The World Economy, Wiley Blackwell, vol. 23(04), pages 577-593, April.
    7. Joseph Francois & Hugh M. Arce & Kenneth A. Reinert & Joseph E. Flynn, 1996. "Commercial Policy and the Domestic Carrying Trade," Canadian Journal of Economics, Canadian Economics Association, vol. 29(1), pages 181-198, February.
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    Cited by:

    1. Prabir De & Biswa N. Bhattacharyay, 2007. "Deepening India–Bangladesh Economic Cooperation : Challenges and Opportunities," Macroeconomics Working Papers 22098, East Asian Bureau of Economic Research.
    2. Takauchi, Kazuhiro, 2012. "International R&D Rivalry with a Shipping Firm," MPRA Paper 36843, University Library of Munich, Germany.
    3. Kenzo Abe & Keisuke Hattori & Yoshitaka Kawagoshi, 2014. "Trade Liberalization and Environmental Regulation on International Transportation," The Japanese Economic Review, Japanese Economic Association, vol. 65(4), pages 468-482, December.

    More about this item


    Trade Facilitation; Transport Services; International Negotiations;

    JEL classification:

    • F12 - International Economics - - Trade - - - Models of Trade with Imperfect Competition and Scale Economies; Fragmentation
    • F23 - International Economics - - International Factor Movements and International Business - - - Multinational Firms; International Business
    • L91 - Industrial Organization - - Industry Studies: Transportation and Utilities - - - Transportation: General

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