How Much Does Trade Contribute to Market Structure?

Daniel Mirza

Economica, 2006, vol. 73, issue 289, 59-74

Abstract: In general, firm‐level data are not available among foreign sellers to enable researchers to compute market concentration in open markets, and especially trade's contribution to this concentration. We implement a theory‐based procedure from a generalized Brander–Krugman framework that can be used to estimate foreign contribution to market concentration, using industrial trade and activity data only and without any need for firm‐level data. The results suggest a foreign contribution to concentration of around 30%–50% for small European economies and 20%–30% for larger European countries. Market structure is less affected by openness in the USA and Japan.

Date: 2006
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https://doi.org/10.1111/j.1468-0335.2006.00448.x

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Persistent link: https://EconPapers.repec.org/RePEc:bla:econom:v:73:y:2006:i:289:p:59-74

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