Market structure and market access

Joseph Francois and Ian Wooton ()

No 2007-06, Economics working papers from Department of Economics, Johannes Kepler University Linz, Austria

Abstract: We examine an issue at the nexus of domestic competition policy and international trade, 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-´a-vis 69 exporters. Competition in services affects the volume of goods trade. Additionally, because of interaction between tariffs and competition, the market structure of the domestic service sector becomes increasingly important as tariffs are reduced. Empirically service competition apparently matters most for exporters in smaller, poorer countries. Our results also suggest that while negotiated agreements leading to crossborder services liberalization may boost goods trade as well, they may also lead to a fall in goods trade when such liberalization involves FDI leading to increased service sector concentration.

Keywords: distribution sector competition; market access; services; trade liberalization; GATS (search for similar items in EconPapers)
JEL-codes: F12 F13 L16 L8 (search for similar items in EconPapers)
Date: 2007-02
New Economics Papers: this item is included in nep-com, nep-ind and nep-int
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (4)

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Related works:
Journal Article: Market Structure and Market Access (2010)
Working Paper: Market Structure and Market Access (2008)
Working Paper: Market structure and market access (2007)
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Persistent link: https://EconPapers.repec.org/RePEc:jku:econwp:2007_06

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