How Much Does Trade Contribute to Market Structure

Bibliographic Data

ID9728343
AuthorsDaniel Mirza (0000-0002-0685-2939, University of Nottingham, corresponding author)
Year2006
Volume73
Issue289
Pages59-74
Publication date2006-02-01
Peer ReviewedYes
Open AccessYes
TypeARTICLE
VenueEconomica (JOURNAL)
Journal identifiersISSN: 0013-0427 • E-ISSN: 1468-0335
PublisherWiley (PUBLISHER • GB)
DOI10.1111/j.1468-0335.2006.00448.x
OpenAlexW2070394660
LanguageEN
References cited20

In general, firm‐level data are not available among foreign sellers to enable researchers to compute market concentration in open markets, and especially trade's contribution to this concentration. We implement a theory‐based procedure from a generalized Brander–Krugman framework that can be used to estimate foreign contribution to market concentration, using industrial trade and activity data only and without any need for firm‐level data. The results suggest a foreign contribution to concentration of around 30%–50% for small European economies and 20%–30% for larger European countries. Market structure is less affected by openness in the USA and Japan

Business · Economics · Industrial organization · International economics · International trade · Market concentration · Market Size · Market structure · Monetary economics · Openness to experience · Small open economy · Firm Innovation and Growth · Global trade and economics · International Business and FDI