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Within-Industry Specialization and Global Market Power

Author

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  • Ahmad Lashkaripour

Abstract

Export price levels exhibit tremendous cross-national and spatial variation, even within narrowly defined industries. Standard theories attribute this variation to within-industry quality specialization. This paper argues that a significant portion of the export price variation is driven by rich and remote economies specializing in high-market power segments of industries. I also argue that this particular pattern of specialization (i) accounts for 30 percent of the overall gains from trade, and (ii) explains more than 37 percent of the observed cross-national income inequality.

Suggested Citation

  • Ahmad Lashkaripour, 2020. "Within-Industry Specialization and Global Market Power," American Economic Journal: Microeconomics, American Economic Association, vol. 12(1), pages 75-124, February.
    • Handle: RePEc:aea:aejmic:v:12:y:2020:i:1:p:75-124
    DOI: 10.1257/mic.20170336
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    Cited by:

    1. Ana P. Fernandes & Heiwai Tang, 2020. "Fast Fashion: Theory and Evidence from Portuguese Textile and Clothing Firms," CESifo Working Paper Series 8125, CESifo.

    More about this item

    JEL classification:

    • D43 - Microeconomics - - Market Structure, Pricing, and Design - - - Oligopoly and Other Forms of Market Imperfection
    • F12 - International Economics - - Trade - - - Models of Trade with Imperfect Competition and Scale Economies; Fragmentation
    • F13 - International Economics - - Trade - - - Trade Policy; International Trade Organizations
    • F14 - International Economics - - Trade - - - Empirical Studies of Trade
    • L15 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Information and Product Quality
    • L22 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Firm Organization and Market Structure
    • O19 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - International Linkages to Development; Role of International Organizations

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