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Market Structure in the Distribution Sector and Merchandise Trade

Author

Listed:
  • Hildegunn Kyvik Nordås

    (OECD)

  • Massimo Geloso Grosso

    (OECD)

  • Enrico Pinali

    (OECD)

Abstract

This study aims at exploring how recent developments in the retail sector affect trade in consumer goods. It focuses on three areas of development: i) internationalisation; ii) market structure; and iii) the growing market share of retailers? private labels. It distinguishes between food and non-food products as there are significant differences between the sourcing patterns of these two product categories. The gravity model is extended by integrating a retail intermediary sector, and a novel estimation technique (zero inflated Poisson) is proposed. It is found that the foreign operations of a retailer are positively related to imports from the host to the home country of the retailer. The rate of market concentration and the market share of private labels are both found to be negatively related to imports of food and positively related to imports of non-food consumer goods, but private labels tend to shift sourcing towards low-income countries. Lower tariffs yield a stronger import response in countries with a less concentrated retail sector, particularly for food items suggesting that competition policy and trade policy are complementary. In developing countries the entry of international retailers can have a positive impact on exports and product quality.

Suggested Citation

  • Hildegunn Kyvik Nordås & Massimo Geloso Grosso & Enrico Pinali, 2008. "Market Structure in the Distribution Sector and Merchandise Trade," OECD Trade Policy Papers 68, OECD Publishing.
  • Handle: RePEc:oec:traaab:68-en
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    File URL: http://dx.doi.org/10.1787/244328264654
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    References listed on IDEAS

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    Citations

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    Cited by:

    1. Cheptea, Angela & Emlinger, Charlotte & Latouche, Karine, 2014. "Do exporting firms benefit from retail internationalization? Evidence from France," 2014 International Congress, August 26-29, 2014, Ljubljana, Slovenia 182706, European Association of Agricultural Economists.
    2. repec:bla:worlde:v:40:y:2017:i:3:p:544-573 is not listed on IDEAS
    3. Angela Cheptea & Charlotte Emlinger & Karine Latouche, 2012. "Multinational Retailers and Home Country Exports," Post-Print hal-01208840, HAL.
    4. Thomas Laudal, 2011. "Drivers and barriers of CSR and the size and internationalization of firms," Social Responsibility Journal, Emerald Group Publishing, vol. 7(2), pages 234-256, July.
    5. Angela Cheptea, 2014. "Do multinational retailers affect the export competitveness of host countries?," IAW Discussion Papers 106, Institut für Angewandte Wirtschaftsforschung (IAW).
    6. Raff, Horst & Schmitt, Nicolas, 2015. "Retailing and international trade: A survey of the literature," Economics Working Papers 2015-02, Christian-Albrechts-University of Kiel, Department of Economics.
    7. Kiyoyasu Tanaka, 2015. "Firm Heterogeneity and FDI in Distribution Services," The World Economy, Wiley Blackwell, vol. 38(8), pages 1295-1311, August.
    8. Angela Cheptea & Charlotte Emlinger & Karine Latouche, 2015. "Exporting firms and retail internationalization. Evidence from France," Working Papers SMART - LERECO 15-13, INRA UMR SMART-LERECO.
    9. Yaghoob Jafari & David G. Tarr, 2017. "Estimates of Ad Valorem Equivalents of Barriers Against Foreign Suppliers of Services in Eleven Services Sectors and 103 Countries," The World Economy, Wiley Blackwell, vol. 40(3), pages 544-573, March.
    10. Cheptea, Angela & Emlinger, Charlotte & Latouche, Karine, 2013. "Multinational Retailers and Firm-Level Exports," Proceedings Issues, 2013: Employment, Immigration and Trade, December 15-17, 2013, Clearwater Beach, Florida 182499, International Agricultural Trade Research Consortium.
    11. Cheptea, Angela, 2016. "Multinational retailers and host countries’ export competitiveness," 149th Seminar, October 27-28, 2016, Rennes, France 244952, European Association of Agricultural Economists.

    More about this item

    Keywords

    gravity model; retail sector; trade in consumer goods;

    JEL classification:

    • F12 - International Economics - - Trade - - - Models of Trade with Imperfect Competition and Scale Economies; Fragmentation

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