Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/26284
Authors: 
Francois, Joseph
Wooton, Ian
Year of Publication: 
2008
Series/Report no.: 
CESifo working paper 2239
Abstract: 
We examine 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-à-vis 69 exporters. Competition in services affects the volume of goods trade while the market structure of the domestic service sector becomes increasingly important as tariffs are reduced. Empirically, lack of service competition apparently matters most for exporters in smaller, poorer countries. By ignoring the structure of the domestic services sector, we may be seriously overestimating the market-access benefits of tariff reductions.
Subjects: 
import volumes
distribution section
market access
services
trade liberalisation
GATS
gravity model
JEL: 
F12
F13
L8
L16
Document Type: 
Working Paper

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