The effect of international trade on markups distribution
AbstractThis paper presents empirical evidence about the relationship between market openness and markup distribution of manufacturing firms. 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 Melitz and Ottaviano (2008)
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Bibliographic InfoArticle provided by Oviedo University Press in its journal Economics and Business Letters.
Volume (Year): 2 (2013)
Issue (Month): 1 ()
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Other versions of this item:
- Moreno, L & Rodríguez, D, 2009. "The effect of international trade on mark-ups distribution," MPRA Paper 22652, University Library of Munich, Germany.
- F12 - International Economics - - Trade - - - Models of Trade with Imperfect Competition and Scale Economies; Fragmentation
- L60 - Industrial Organization - - Industry Studies: Manufacturing - - - General
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- OTTAVIANO, Gianmarco & TABUCHI , Takatoshi & THISSE, Jacques-François, .
"Agglomeration and trade revisited,"
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- Gianmarco Ottaviano & Takatoshi Tabuchi & Jacques-Francois Tissse, 1999. "Agglomeration and Trade Revisited," CIRJE F-Series CIRJE-F-65, CIRJE, Faculty of Economics, University of Tokyo.
- Ottaviano, Gianmarco Ireo Paolo & Thisse, Jacques-François, 1998. "Agglomeration and Trade Revisited," CEPR Discussion Papers 1903, C.E.P.R. Discussion Papers.
- OTTAVIANO, Gianmarco & THISSE, Jacques-François, 1999. "Agglomeration and trade revisited," CORE Discussion Papers 1999041, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE).
- Lourdes Moreno & Diego Rodríguez, 2004.
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- Lourdes Moreno Martin & Diego Rodriguez Rodriguez, 2010. "Export activity, persistence and mark-ups," Applied Economics, Taylor & Francis Journals, vol. 42(4), pages 475-488.
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