Imports, Pass-Through, and the Structure of Retail Markets
Abstract
We construct a model of trade with heterogeneous retailers to examine the effects of trade liberalization on retail market structure, imports and social welfare. We are especially interested in studying the degree of pass-through of import into retail prices and the effects of retail market regulation. The paper shows that the degree of pass-through may be large when market structure effects are taken into account, and that restrictions on retailing may have significant effects on imports and the degree of pass-through. The paper helps explain the apparent discrepancy between the low observed degree of pass-through and the large benefit that consumers seem to derive from trade liberalizationDownload Info
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Paper provided by Kiel Institute for the World Economy in its series Kiel Working Papers with number 1556.Length: 35 pages
Date of creation: Sep 2009
Date of revision:
Handle: RePEc:kie:kieliw:1556
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Related research
Keywords: international trade; retailing; pass-through; firmheterogeneity;Other versions of this item:
- Horst Raff & Nicolas Schmitt, 2009. "Imports, Pass-Through, and the Structure of Retail Markets," CESifo Working Paper Series 2817, CESifo Group Munich.
- F12 - International Economics - - Trade - - - Models of Trade with Imperfect Competition and Scale Economies
- L11 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Production, Pricing, and Market Structure; Size Distribution of Firms
This paper has been announced in the following NEP Reports:
- NEP-ALL-2009-09-26 (All new papers)
- NEP-OPM-2009-09-26 (Open Economy Macroeconomic)
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Citations
Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.Cited by:
- Joseph Francois & Bernard Hoekman, 2010.
"Services Trade and Policy,"
Journal of Economic Literature,
American Economic Association, vol. 48(3), pages 642-92, September.
- Joseph F. Francois & B. Hoekman, 2009. "Services Trade and Policy," wiiw Working Papers 60, The Vienna Institute for International Economic Studies, wiiw.
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- Joseph F. Francois & Bernard Hoekman, 2009. "Services Trade and Policy," Economics working papers 2009-03, Department of Economics, Johannes Kepler University Linz, Austria.
- Debaere, Peter & Görg, Holger & Raff, Horst, 2010.
"Greasing the wheels of international commerce: how services facilitate firms' international sourcing,"
Open Access publications from Kiel Institute for the World Economy
F3-V3, Kiel Institute for the World Economy.
- Peter Debaere & Holger Görg & Horst Raff, 2013. "Greasing the wheels of international commerce: how services facilitate firms' international sourcing," Canadian Journal of Economics, Canadian Economics Association, vol. 46(1), pages 78-102, February.
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- Peter Debaere & Holger Görg & Horst Raff, 2010. "Greasing the Wheels of International Commerce: How Services Facilitate Firms' International Sourcing," CESifo Working Paper Series 2941, CESifo Group Munich.
- Peter Debaere & Holger Görg & Horst Raff, . "Greasing the Wheels of International Commerce: How Services Facilitate Firms’ International Sourcing," Discussion Papers 10/01, University of Nottingham, GEP.
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- Debaere, Peter & Görg, Holger & Raff, Horst, 2010. "Greasing the Wheels of International Commerce: How Services Facilitate Firms' International Sourcing," CEPR Discussion Papers 7675, C.E.P.R. Discussion Papers.
- Elisabeth M. Christen & Joseph Francois & Bernard Hoekman, 2012.
"CGE Modeling of Market Access in Services,"
Economics working papers
2012-08, Department of Economics, Johannes Kepler University Linz, Austria.
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