Market Structure, Trade Liberalization and the Gats
CIES Working Paper No. 3
25 Pages Posted: 3 Aug 2000
Date Written: February 2000
In this paper we consider the impact of improved domestic market access for a foreign service provider. We emphasize the interaction between the different modes of market access commitments in services (cross-border and establishment) market structure, and regulation. We work with a model where the domestic industry is assumed to imperfectly competitive and, as a result of domestic regulation, able to act as a cartel. We also examine the incentives for the domestic firms to accommodate the entry of the foreign firm by inviting it to join the cartel.
Keywords: Services Trade, Trade Liberalization, Market Access, Imperfect Competition
JEL Classification: F12, F13, F23
Suggested Citation: Suggested Citation