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The Strathprints institutional repository is a digital archive of University of Strathclyde research outputs.

Strathprints serves world leading Open Access research by the University of Strathclyde, including research by the Strathclyde Institute of Pharmacy and Biomedical Sciences (SIPBS), where research centres such as the Industrial Biotechnology Innovation Centre (IBioIC), the Cancer Research UK Formulation Unit, SeaBioTech and the Centre for Biophotonics are based.

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Market structure, trade liberalization and the GATS

Francois, J.F. and Wooton, I. (2001) Market structure, trade liberalization and the GATS. European Journal of Political Economy, 17 (2). pp. 389-402. ISSN 0176-2680

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Abstract

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.