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Market Structure in Services and Market Access in GoodsJoseph F. FrancoisJohannes Kepler University Linz; Centre for Economic Policy Research (CEPR); Vienna Institute of International Economic Studies (WIIW); University of Adelaide - School of Economics Ian WootonUniversity of Strathclyde - Department of Economics; Centre for Economic Policy Research (CEPR); CESifo (Center for Economic Studies and Ifo Institute for Economic Research) July 2005 CEPR Discussion Paper No. 5135 Abstract: We examine interaction between goods trade and market power in domestic trade and distribution sectors. Theory suggests a linkage between service-sector competition and goods trade, one supported by econometrics involving imports of 22 OECD countries vis-a-vis 69 exporters. This points to linkages between market access conditions for goods and the structure of the service sector. 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. Also, empirically service competition apparently matters most for exporters in smaller, poorer countries.
Number of Pages in PDF File: 22 Keywords: Market access, services trade, trade liberalization, trade and competition, GATS, strategic competition policy JEL Classification: F12, F13, F23 working papers seriesDate posted: August 17, 2005Suggested CitationContact Information
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