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Natural Resource Dependence and Monopolized Imports

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  • Rabah Arezki

    (Harvard Kennedy School - Harvard Kennedy School, CERDI - Centre d'Études et de Recherches sur le Développement International - IRD - Institut de Recherche pour le Développement - CNRS - Centre National de la Recherche Scientifique - UCA - Université Clermont Auvergne, FERDI - Fondation pour les Etudes et Recherches sur le Développement International)

  • Ha Nguyen

    (International Monetary Fund (IMF))

  • Tristan Reed

    (World Bank Group)

  • Ana Fernandes

    (World Bank Group)

  • Federico Merchán

    (CAU - Christian-Albrechts-Universität zu Kiel = Christian-Albrechts University of Kiel = Université Christian-Albrechts de Kiel)

Abstract

Countries with greater commodity export intensity have more concentrated markets for imported goods. Within countries over time, import market concentration is associated with higher domestic prices, suggesting that markups due to greater concentration outweigh any potential cost efficiency. Hydrocarbon fuel exporting economies especially have higher tariffs, tariff evasion, and non-tariff measures that concentrate markets. These results suggest a novel channel for the resource curse stemming from the monopolization of imports.

Suggested Citation

  • Rabah Arezki & Ha Nguyen & Tristan Reed & Ana Fernandes & Federico Merchán, 2023. "Natural Resource Dependence and Monopolized Imports," CERDI Working papers hal-04092285, HAL.
    • Handle: RePEc:hal:cdiwps:hal-04092285
    Note: View the original document on HAL open archive server: https://uca.hal.science/hal-04092285
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    More about this item

    Keywords

    Imports; Market concentration; Natural resources; Resource curse;
    All these keywords.

    JEL classification:

    • D20 - Microeconomics - - Production and Organizations - - - General
    • F10 - International Economics - - Trade - - - General
    • L10 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - General
    • O10 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - General
    • Q00 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - General - - - General

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