Within-Industry Specialization and Global Market Power

Ahmad Lashkaripour

American Economic Journal: Microeconomics, 2020, vol. 12, issue 1, 75-124

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.

JEL-codes: D43 F12 F13 F14 L15 L22 O19 (search for similar items in EconPapers)
Date: 2020
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DOI: 10.1257/mic.20170336

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