The effect of international trade on mark-ups distribution



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Moreno Martín, Lourdes and Rodríguez Rodríguez, Diego (2013) The effect of international trade on mark-ups distribution. Economics and Business Letters, 2 (1). pp. 33-41.

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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 to identify individual mark-ups. The results point out that tougher competition associated to openness reduces 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 across industries 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:Article
Uncontrolled Keywords:Comercio internacional; Marcas; Distribución.
Palabras clave (otros idiomas):International Trade; Mark-ups Distribution.
Subjects:Social sciences > Economics > Banks and credit unions
Social sciences > Economics > World economy
Social sciences > Economics > Industrial organization
JEL:F12, L60, L13
ID Code:43321
Deposited On:14 Jun 2017 11:40
Last Modified:14 Jun 2017 11:40

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