Manufacturers and Retailers in the Global Economy
Abstract
We develop a general-equilibrium model to capture key features of the retailing and of the manufacturing industry in order to understand how these two industries interact and how labor is allocated between them. We show that the observed shift in employment from manufacturing to retailing, the rise in retailer product assortment and the emergence of slotting allowances in many retail markets are consistent with the global integration of product markets, while higher retail market concentration is best explained by technological change in retailing. We also identify a novel benefit from market integration consisting of efficiency gains in the vertical distribution chainDownload Info
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Paper provided by Kiel Institute for the World Economy in its series Kiel Working Papers with number 1711.Length: 30 pages
Date of creation: Jun 2011
Date of revision:
Handle: RePEc:kie:kieliw:1711
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Related research
Keywords: international trade; product variety; retailing; slotting allowance; multi-product firms;Other versions of this item:
- Horst Raff & Nicolas Schmitt, 2011. "Manufacturers and Retailers in the Global Economy," CESifo Working Paper Series 3508, CESifo Group Munich.
- F12 - International Economics - - Trade - - - Models of Trade with Imperfect Competition and Scale Economies
- F15 - International Economics - - Trade - - - Economic Integration
- L13 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Oligopoly and Other Imperfect Markets
This paper has been announced in the following NEP Reports:
- NEP-ALL-2011-07-02 (All new papers)
- NEP-COM-2011-07-02 (Industrial Competition)
- NEP-INT-2011-07-02 (International Trade)
References
References listed on IDEASPlease report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
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Citations
Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.Cited by:
- Horst Raff & Nicolas Schmitt, 2012.
"Imports and the structure of retail markets,"
Canadian Journal of Economics,
Canadian Economics Association, vol. 45(4), pages 1431-1455, November.
- Raff, Horst & Schmitt, Nicolas, 2011. "Imports and the structure of retail markets," Economics Working Papers 2011,05, Christian-Albrechts-University of Kiel, Department of Economics.
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