Market Structure and Market Access

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.

Bibliographic Details

Main Authors:	Francois, Joseph, Wooton, Ian
Language:	English
Published:	World Bank, Washington, DC 2007-03
Subjects:	AGGREGATE TRADE, AGGREGATE TRADE FLOWS, AGREEMENT ON TRADE, ANTITRUST POLICY, APPAREL, APPLIED TARIFF, ARBITRAGE, BARRIERS TO ENTRY, BENEFITS OF TRADE, BILATERAL TRADE, BORDER TRADE, CARTEL, COLLUSION, COMPETITION POLICY, COMPETITION REGIMES, COMPETITIVENESS, CONCESSIONS, CONSUMER SURPLUS, CONSUMERS, CUSTOMS, CUSTOMS UNION, CUSTOMS UNIONS, DEMAND CURVE, DISTRIBUTION NETWORK, DOMESTIC COMPETITION, DOMESTIC INDUSTRY, DOMESTIC MARKET, DOMESTIC PRICE, DOMESTIC REGULATION, DOMESTIC TRADE, DUOPOLY, ECONOMETRIC MODELS, ECONOMETRICS, EXPORT BARRIERS, EXPORT MARKET, EXPORT MARKETS, EXPORT PRICE, EXPORT QUANTITIES, EXPORT SUPPLY, EXPORT VOLUMES, EXPORTERS, EXPORTS, FOREIGN SUPPLIERS, FREE TRADE, FREE TRADE AREA, FREE TRADE AREAS, GDP, GENERAL AGREEMENT ON TRADE IN SERVICES, GLOBAL TRADE, GLOBAL TRADE ANALYSIS, GRAVITY EQUATION, GRAVITY MODEL, GROSS DOMESTIC PRODUCT, IMPERFECT COMPETITION, IMPORT BARRIERS, IMPORT DATA, IMPORT PRICE, IMPORT PROTECTION, IMPORT TARIFF, IMPORT TARIFFS, IMPORT TAX, IMPORT VALUE, IMPORTS, INCOME, INTERMEDIATE INPUTS, INTERNATIONAL ECONOMICS, INTERNATIONAL NEGOTIATIONS, INTERNATIONAL TRADE, MARGINAL COST, MARGINAL COST OF PRODUCTION, MARKET ACCESS, MARKET INTEGRATION, MARKET POWER, MARKET STRUCTURE, MARKETING, MERCHANDISE, MERCHANDISE TRADE, MERGERS, MONOPOLY, MULTILATERAL NEGOTIATIONS, MULTILATERAL TRADE, MULTILATERAL TRADE AGREEMENTS, OLIGOPOLY, OPEN ECONOMIES, OPEN ECONOMY, PACIFIC REGION, PATTERN OF TRADE, POLITICAL ECONOMY, PREFERENTIAL MARKET ACCESS, PREFERENTIAL TARIFF, PROFIT MARGIN, PROFIT MAXIMIZATION, PROTECTION DATA, RETAIL, RETAILING, SALE, SALES, SERVICE MARKET, SUBSTITUTION, SUPPLIER, SUPPLIERS, SUPPLY CURVE, SUPPLY FUNCTION, SUPPLY SCHEDULE, SURPLUS, TARIFF DATA, TARIFF LINE, TARIFF RATE, TARIFF RATES, TARIFF REDUCTION, TARIFF REDUCTIONS, TARIFF REVENUE, TOTAL REVENUE, TRADE AGREEMENTS, TRADE BARRIER, TRADE BARRIERS, TRADE BLOC, TRADE DATA, TRADE DISPUTE, TRADE FLOWS, TRADE IN GOODS, TRADE LIBERALIZATION, TRADE PERFORMANCE, TRADE POLICY, TRADE PREFERENCES, TRADE VOLUME, TRADE VOLUMES, TRANSPORT COSTS, VALUE OF TRADE, VOLUME OF TRADE, WORLD TRADE, WORLD TRADE ORGANIZATION, WTO, ZERO TARIFF,
Online Access:	http://documents.worldbank.org/curated/en/2007/03/7412718/market-structure-market-access https://hdl.handle.net/10986/7200
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