Borchert, IngoGootiiz, BatshurGrover, ArtiMattoo, Aaditya2012-03-192012-03-192012-01-01https://hdl.handle.net/10986/3227A new cross-country database on services policy reveals a perverse pattern: many landlocked countries restrict trade in the very services that connect them with the rest of the world. On average, telecommunications and air-transport policies are significantly more restrictive in landlocked countries than elsewhere. The phenomenon is most starkly visible in Sub-Saharan Africa and is associated with lower levels of political accountability. This paper finds evidence that these policies lead to more concentrated market structures and more limited access to services than these countries would otherwise have, even after taking into account the influence of geography and incomes, and the possibility that policy is endogenous. Even moderate liberalization in these sectors could lead to an increase of cellular subscriptions by 7 percentage points and a 20-percent increase in the number of flights. Policies in other countries, industrial and developing alike, also limit competition in international transport services. Hence, "trade-facilitating" investments under various "aid-for-trade" initiatives are likely to earn a low return unless they are accompanied by meaningful reform in these services sectors.CC BY 3.0 IGOACCESSIBILITYACCOUNTABILITYACCOUNTINGADVERSE EFFECTADVERSE IMPACTAIRAIR CARGOAIR FREIGHTAIR MOVEMENTSAIR PASSENGERAIR ROUTESAIR SERVICEAIR SERVICESAIR TRAFFICAIR TRANSPORTAIR TRANSPORT SECTORAIRCRAFTAIRPORTAIRPORT CONGESTIONAIRPORT INFRASTRUCTUREAIRPORTSAIRWAYSAVERAGE COSTSAVIATION POLICIESBARRIERS TO ENTRYBENCHMARKCARRIERSCOMMON MARKETCOMPARATIVE ANALYSISCOMPETITIVENESSCONSUMER SURPLUSCONSUMERSCONTESTABILITYCORRUPTIONCOST FUNCTIONSCOST OF TRANSPORTATIONDECISION MAKERSDEMAND CURVEDEMAND ELASTICITIESDEMAND ELASTICITYDEMAND FUNCTIONDEMAND FUNCTIONSDEMOCRACYDEMOCRATIC COUNTRIESDEMOCRATIC INSTITUTIONSDEVELOPMENT ECONOMICSDEVELOPMENT POLICYDISCRETIONDISECONOMIES OF SCALEDOMESTIC AIR TRANSPORTDUOPOLYECONOMETRIC ANALYSESECONOMETRIC ANALYSISECONOMIC PERFORMANCEECONOMIC SIZEECONOMIES OF SCALEFAIRSFLIGHT CONNECTIONSFREIGHTFREIGHT TRANSPORTFUELFUEL PRICESFUTURE RESEARCHGDPGDP PER CAPITAGOVERNMENT OFFICIALSHIGH TRANSPORTINCOME LEVELSINEFFICIENCYINELASTIC DEMANDINFRASTRUCTURE INVESTMENTINFRASTRUCTURE PROJECTSINTERNATIONAL AIR TRANSPORTINTERNATIONAL FLIGHTSINTERNATIONAL GATEWAYSINTERNATIONAL MARKETINTERNATIONAL TRADEINTERNATIONAL TRANSPORTINVESTIGATIONLOBBYINGMARGINAL COSTMARGINAL REVENUEMARITIME TRANSPORTMARKET ACCESSMARKET CONCENTRATIONMARKET ENTRYMARKET LIBERALIZATIONMARKET POWERMARKET SHAREMARKET STRUCTUREMARKET STUDYMODE OF TRANSPORTATIONMONOPOLYOLIGOPOLYPASSENGER TRAFFICPASSENGER TRANSPORTPASSENGERSPER CAPITA INCOMEPOLICESPOLITICAL ECONOMYPOLITICAL PARTICIPATIONPOLITICAL PROCESSPOPULATION DENSITYPOSITIVE EXTERNALITYPRICE ELASTICITYPRICE ELASTICITY OF DEMANDPRIVATIZATIONRADIORAILRAIL TRANSPORTRAILWAYREGRESSION ANALYSISREMEDYRETAILRETAILINGROADROAD TRANSPORTROAD TRANSPORT SERVICESROADSROUTEROUTESRUNWAYRUNWAYSSALESALESSCALE EFFECTSEAT CAPACITYSERVICES MARKETSSTRATEGIC COMPLEMENTARITYSUBSTITUTESUNK COSTSSUPPLIERSUPPLIERSSUPPLY CHAINSURPLUSTARIFF BARRIERSTAXTELECOM SECTORTELECOM SERVICESTELECOMMUNICATIONTELECOMMUNICATIONSTELECOMMUNICATIONS INFRASTRUCTURETELECOMMUNICATIONS REFORMTELECOMMUNICATIONS REFORMSTELECOMMUNICATIONS SECTORTELECOMMUNICATIONS SERVICESTELEDENSITYTRADE POLICIESTRADE POLICYTRAFFICTRANSITTRANSPARENCYTRANSPORTTRANSPORT COSTSTRANSPORT ECONOMICSTRANSPORT MARKETTRANSPORT POLICIESTRANSPORT SECTORTRANSPORT SERVICETRANSPORT SERVICE PROVIDERSTRANSPORT SERVICESTRANSPORTATION INFRASTRUCTURETRANSPORTATION SERVICESTRUEURUGUAY ROUNDVALUATIONWTOWorld Bank10.1596/1813-9450-5942