Trade Policy and Market Power : Firm-Level Evidence
This paper identifies the effect of trade policy on market power through new data and a new identification strategy. It uses a large data set containing export values and quantities by product and destination for all exporting firms in 12 developin...
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World Bank, Washington, DC
2019
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| Online Access: | http://documents.worldbank.org/curated/en/467281572356928847/Trade-Policy-and-Market-Power-Firm-Level-Evidence http://hdl.handle.net/10986/32659 |
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okr-10986-326592022-09-20T00:14:07Z Trade Policy and Market Power : Firm-Level Evidence Asprilla, Alan Berman, Nicolas Cadot, Olivier Jaud, Melise TRADE POLICY NON-TARIFF BARRIERS TARIFFS EXCHANGE RATES PRICE DISCRIMINATION MARKET POWER EMERGING MARKET ECONOMIES EXPORT FIRMS This paper identifies the effect of trade policy on market power through new data and a new identification strategy. It uses a large data set containing export values and quantities by product and destination for all exporting firms in 12 developing and emerging countries over several years, merged with destination-product-specific information on tariffs and non-tariff barriers. Market power is identified by observing how exporting firms price discriminate across markets in reaction to variations in bilateral exchange rates. Pricing-to-market is prevalent in all regions of the sample, even among small firms, although it is increasing in firm size, in accordance with theory. More importantly, the effect of non-tariff measures is not isomorphic to that of tariffs: the observed pricing-to-market behavior suggests that, although tariffs reduce the market power of foreign firms through classic rent-shifting effects, non-tariff measures alter market structure and reinforce the market power of non-exiting firms, domestic and foreign ones alike. 2019-11-21T17:16:27Z 2019-11-21T17:16:27Z 2019-10 Working Paper http://documents.worldbank.org/curated/en/467281572356928847/Trade-Policy-and-Market-Power-Firm-Level-Evidence http://hdl.handle.net/10986/32659 English Policy Research Working Paper;No. 9050 CC BY 3.0 IGO http://creativecommons.org/licenses/by/3.0/igo World Bank World Bank, Washington, DC Publications & Research Publications & Research :: Policy Research Working Paper |
| repository_type |
Digital Repository |
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Foreign Institution |
| institution |
Digital Repositories |
| building |
World Bank Open Knowledge Repository |
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World Bank |
| language |
English |
| topic |
TRADE POLICY NON-TARIFF BARRIERS TARIFFS EXCHANGE RATES PRICE DISCRIMINATION MARKET POWER EMERGING MARKET ECONOMIES EXPORT FIRMS |
| spellingShingle |
TRADE POLICY NON-TARIFF BARRIERS TARIFFS EXCHANGE RATES PRICE DISCRIMINATION MARKET POWER EMERGING MARKET ECONOMIES EXPORT FIRMS Asprilla, Alan Berman, Nicolas Cadot, Olivier Jaud, Melise Trade Policy and Market Power : Firm-Level Evidence |
| relation |
Policy Research Working Paper;No. 9050 |
| description |
This paper identifies the effect of
trade policy on market power through new data and a new
identification strategy. It uses a large data set containing
export values and quantities by product and destination for
all exporting firms in 12 developing and emerging countries
over several years, merged with destination-product-specific
information on tariffs and non-tariff barriers. Market power
is identified by observing how exporting firms price
discriminate across markets in reaction to variations in
bilateral exchange rates. Pricing-to-market is prevalent in
all regions of the sample, even among small firms, although
it is increasing in firm size, in accordance with theory.
More importantly, the effect of non-tariff measures is not
isomorphic to that of tariffs: the observed
pricing-to-market behavior suggests that, although tariffs
reduce the market power of foreign firms through classic
rent-shifting effects, non-tariff measures alter market
structure and reinforce the market power of non-exiting
firms, domestic and foreign ones alike. |
| format |
Working Paper |
| author |
Asprilla, Alan Berman, Nicolas Cadot, Olivier Jaud, Melise |
| author_facet |
Asprilla, Alan Berman, Nicolas Cadot, Olivier Jaud, Melise |
| author_sort |
Asprilla, Alan |
| title |
Trade Policy and Market Power : Firm-Level Evidence |
| title_short |
Trade Policy and Market Power : Firm-Level Evidence |
| title_full |
Trade Policy and Market Power : Firm-Level Evidence |
| title_fullStr |
Trade Policy and Market Power : Firm-Level Evidence |
| title_full_unstemmed |
Trade Policy and Market Power : Firm-Level Evidence |
| title_sort |
trade policy and market power : firm-level evidence |
| publisher |
World Bank, Washington, DC |
| publishDate |
2019 |
| url |
http://documents.worldbank.org/curated/en/467281572356928847/Trade-Policy-and-Market-Power-Firm-Level-Evidence http://hdl.handle.net/10986/32659 |
| _version_ |
1764477012686143488 |