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N° 2009-37 |
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| December 2009 |
Assessing Barriers to Trade in the Distribution
and Telecom Sectors
in Emerging Countries |
Lionel Fontagné
Cristina Mitaritonna |
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| 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 on the
basis of which 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, using a method avoiding the usual two-stage
estimation. 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%. |
Non-technical summary  |
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Résumé
non-technique
en français |
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| Full text |
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| Services; ad valorem equivalents |
Keywords |
| F13 |
JEL classification |
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