Publication: Market Structure and Market Access
Date
2007-03
ISSN
Published
2007-03
Author(s)
Francois, Joseph
Wooton, Ian
Abstract
The authors 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 compared with 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. The results also suggest that
while negotiated agreements leading to cross-border services
liberalization may boost goods trade as well, they may also
lead to a fall in goods trade when such liberalization
involves foreign direct investment leading to increased
service sector concentration.
Citation
“Francois, Joseph; Wooton, Ian. 2007. Market Structure and Market Access. Policy Research Working Paper; No. 4151. © World Bank, Washington, DC. http://openknowledge.worldbank.org/entities/publication/9e463f9d-d665-5485-a7e2-5bb59bdcd131 License: CC BY 3.0 IGO.”
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