An analysis of market access

Jay Squalli, Kenneth Wilson and Sarah Hugo

Applied Economics, 2010, vol. 42, issue 14, 1833-1844

Abstract: Market access matters. This article creates, for the first time, a quantitative measure of market access, the Market Access Index, which enables the creation of a rank order, or league table, of market access for a large sample of world economies. The article uses Structural Equation Modelling and a data set from the World Economic Forum and provides a broader framework for the analysis of market access arguing that market access is driven by the regulatory environment, public institutions and network industries. The article finds that network industries are the most important contributors to market access, followed by public institutions. The regulatory environment, covering trade policy is the least important contributor. These findings have important implications for the role of trade policy in influencing greater market access.

Date: 2010
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DOI: 10.1080/00036840701736198

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