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Assessing barriers to trade in the distribution and telecom sectors in emerging countries

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  • FONTAGNÉ, LIONEL
  • MITARITONNA, CRISTINA

Abstract

We compute ad valorem equivalents (AVEs) for the regulation in three service sectors (i.e. fixed telecom, mobile telecom, distribution) applied by selected emerging countries. We start with qualitative information on the restrictions applied by each country in each sector; we apply a multivariate statistical approach to transform this qualitative data into a trade restrictiveness synthetic index (STRI). In a second stage, we estimate the average impact of STRI on price–cost margins. In the third stage, this impact is used to calculate the AVE of the STRI estimated in the first step. It is shown that the STRI has a significant effect on the price–cost margins of the individual firms only when controlled for Regional Trade Agreements and exception to the MFN clause in the considered sector. Lastly, we compute tariff equivalents for the STRIs previously calculated using the estimated impact. More than half our AVEs are larger than 50% and one AVE out of six is above 100%.

Suggested Citation

  • Fontagné, Lionel & Mitaritonna, Cristina, 2013. "Assessing barriers to trade in the distribution and telecom sectors in emerging countries," World Trade Review, Cambridge University Press, vol. 12(1), pages 57-78, January.
    • Handle: RePEc:cup:wotrrv:v:12:y:2013:i:01:p:57-78_00
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    2. Lionel Fontagné & Cristina E Mitaritonna & José E Signoret, 2016. "Estimated Tariff Equivalents of Services NTMs," Université Paris1 Panthéon-Sorbonne (Post-Print and Working Papers) hal-01476543, HAL.
    3. Camille Reverdy, 2023. "Estimating the general equilibrium effects of services trade liberalization," Review of International Economics, Wiley Blackwell, vol. 31(2), pages 493-521, May.
    4. Crozet, Matthieu & Milet, Emmanuel & Mirza, Daniel, 2016. "The impact of domestic regulations on international trade in services: Evidence from firm-level data," Journal of Comparative Economics, Elsevier, vol. 44(3), pages 585-607.
    5. Olivier CADOT & Ernawati MUNADI & Lili Yan ING, 2013. "Streamlining NTMs in ASEAN: The Way Forward," Working Papers DP-2013-24, Economic Research Institute for ASEAN and East Asia (ERIA).
    6. Laborde, David & Valin, Hugo, 2011. "Assessing the EU biofuel land use change effects: estimates with the MIRAGE-BioF model and uncertainty," Conference papers 332061, Purdue University, Center for Global Trade Analysis, Global Trade Analysis Project.
    7. So, Roger Yu & Bekkers, Eddy, 2024. "The trade effects of a new agreement on services domestic regulation," WTO Staff Working Papers ERSD-2024-02, World Trade Organization (WTO), Economic Research and Statistics Division.
    8. Ezzat, Riham Ahmed & Aboushady, Nora, 2018. "Do restrictive regulatory policies matter for telecom performance? Evidence from MENA countries," Utilities Policy, Elsevier, vol. 53(C), pages 60-72.
    9. Faizi, Bushra & Shah, Mohamed Eskandar, 2022. "Estimating Protection in Services Sector: A PPML Analysis," Conference papers 333430, Purdue University, Center for Global Trade Analysis, Global Trade Analysis Project.
    10. Decreux, Yvan & Milner, Chris, 2010. "Some New Insights into the Effects of the EU-South Korea Free Trade Area: The Role of Non Tariff Barriers," Journal of Economic Integration, Center for Economic Integration, Sejong University, vol. 25, pages 783-817.
    11. Olivier Cadot & Ernawati Munadi & Lili Yan Ing, 2015. "Streamlining Non-Tariff Measures in ASEAN: The Way Forward," Asian Economic Papers, MIT Press, vol. 14(1), pages 35-70, Winter/Sp.
    12. Fontagné, Lionel & Guillin, Amélie & Mitaritonna, Cristina, 2010. "Estimations of Tariff Equivalents for the Services Sectors," Conference papers 331941, Purdue University, Center for Global Trade Analysis, Global Trade Analysis Project.
    13. Julien Gooris & Cristina Mitaritonna, 2015. "Which import restrictions matter for trade in services ?," Working Papers 2015-33, CEPII research center.
    14. Riham Ahmed Ezzat & Nora Aboushady, 2015. "Do Telecom Restrictive Policies Matter for Telecom Performance? Evidence from MENA Countries," Working Papers 949, Economic Research Forum, revised Sep 2015.
    15. Ziyu Yi & Long Wei & Xuan Huang, 2022. "Does Information-and-Communication-Technology Market Openness Promote Digital Service Exports?," Sustainability, MDPI, vol. 14(9), pages 1-19, April.

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    More about this item

    JEL classification:

    • L80 - Industrial Organization - - Industry Studies: Services - - - General
    • F13 - International Economics - - Trade - - - Trade Policy; International Trade Organizations

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