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The effect of international trade on mark-ups distribution

Moreno Martín, Lourdes and Rodriguez Rodriguez, Diego (2009) The effect of international trade on mark-ups distribution. [ ] (Unpublished)

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Abstract

This paper presents empirical evidence about the relationship between market openness and markup distribution of manufacturing firms. The empirical analysis uses a panel data set of Spanish firms in the period 1990-2005, with a structural approach that lets us to identify individual mark-ups. The results point out that tougher competition associated to openness reduces the average of marginal costs and prices, while it increases the average firm size. However, the evidence about the effect on average markups and the dispersion of performance variables is weaker. These results partially support the theoretical predictions by the recent literature on efficiency heterogeneity and international trade and, in particular, Melitz and Ottaviano (2008).


Item Type:Working Paper or Technical Report
Additional Information:

JEL Classification Numbers: F12, L60, L13

Uncontrolled Keywords:Markups, Marginal costs, Size, Openness
Subjects:Social sciences > Economics > World economy
Social sciences > Economics > Industrial organization
Social sciences > Economics > Commerce
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ID Code:9852
Deposited On:08 Feb 2010 09:07
Last Modified:06 Feb 2014 08:32

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