How Much Does Trade Contribute to Market Structure

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

• Increasing Returns Versus National Product Differentiation as an Explanation for the Pattern of U.S.–Canada Trade

  Keith Head, John Ries•American Economic Review•2001

  Incluir item

• Using the gravity equation to differentiate among alternative theories of trade

  Open Access•Robert C Feenstra, James R Markusen et al.•Canadian Journal of Economics/Revue…•2001

  Incluir item

• Gravity with Gravitas

  James E Anderson, Eric van Wincoop•American Economic Review•2003

  Incluir item

• On Theories Explaining the Success of the Gravity Equation

  Simon J Evenett, Wolfgang Keller•Journal of Political Economy•2002

  Incluir item

• Vertical and Horizontal Intra-Industry Trade

  David Greenaway, Robert C Hine et al.•The Economic Journal•1995

  Incluir item

• Intra-Industry Specialisation in a Multi-Country and Multi-Industry Framework

  Bela Balassa, Luc Bauwens•The Economic Journal•1987

  Incluir item

• Advanced Industrial Economics

  Huw Dixon, Huw David Dixon et al.•The Economic Journal•1994

  Incluir item