Market Structure and Market Access

Joseph Francois () and Ian Wooton ()

No CESifo Working Paper No. 2239, CESifo Working Paper Series from CESifo GmbH

Abstract: We examine 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 vis-à-vis 69 exporters. Competition in services affects the volume of goods trade while the market structure of the domestic service sector becomes increasingly important as tariffs are reduced. Empirically, lack of service competition apparently matters most for exporters in smaller, poorer countries. By ignoring the structure of the domestic services sector, we may be seriously overestimating the market-access benefits of tariff reductions.

Keywords: import volumes; distribution section; market access; services; trade liberalisation; GATS; gravity model (search for similar items in EconPapers)
JEL-codes: F12 F13 L16 L80 (search for similar items in EconPapers)
Date: Written 2008
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Related works:
Working Paper: Market structure and market access (2007)
Working Paper: Market structure and market access (2007)
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