Market Structure, Trade Liberalization and the GATS
In this paper we examine the interaction between the different modes of market access commitments in services (cross-border and establishment) market structure, and regulation. In this context, we focus on the impact of improved domestic market access for a foreign service provider on a domestic service market. We work with a model where the domestic industry is assumed to be imperfectly competitive and, as a result of domestic regulation, able to act as a cartel. We also examine the incentives for the domestic firms to accommodate the entry of the foreign firm by inviting it to join the cartel.
|imperfect competition, market access, services trade, trade liberalization|
|Models of Trade with Imperfect Competition and Scale Economies (jel F12), Commercial Policy; Protection; Promotion; Trade Negotiations; International Organizations (jel F13), Multinational Firms; International Business (jel F23)|
|Tinbergen Institute Discussion Paper Series|
François, J.F, & Wooton, I. (2000). Market Structure, Trade Liberalization and the GATS (No. TI 00-059/2). Tinbergen Institute Discussion Paper Series. Retrieved from http://hdl.handle.net/1765/6950