Market structure and market access

Joseph Francois, Ian Wooton

Research output: Contribution to journalArticle

17 Citations (Scopus)
92 Downloads (Pure)

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.
Original languageEnglish
Pages (from-to)873-893
Number of pages21
JournalWorld Economy
Volume33
Issue number7
DOIs
Publication statusPublished - 1 Jul 2010

Keywords

  • market structure
  • market access
  • international trade

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