Market Structure in Services and Market Access in Goods

Joseph Francois () and Ian Wooton ()

No 04-050/2, Tinbergen Institute Discussion Papers from Tinbergen Institute

Abstract: We 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.

Keywords: market access; services trade; trade liberalization; competition policy; imperfect competition; GATS (search for similar items in EconPapers)
JEL-codes: F12 F13 F23 (search for similar items in EconPapers)
Date: Written 2004-05-04
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Related works:
Working Paper: Market Structure in Services and Market Access in Goods (2005)
Working Paper: Market Structure in Services and Market Access in Goods (2005)
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