Markup Dispersion and Firm Entry: Evidence from Ethiopia
Kaku Attah Damoah,
Giorgia Giovannetti () and
Marco Sanfilippo ()
Oxford Bulletin of Economics and Statistics, 2021, vol. 83, issue 2, 299-327
This paper examines whether and to what extent markups can influence structural transformation in a developing country by creating entry barriers. We exploit information from the Ethiopian annual census of manufacturing establishments to estimate markups and their dispersion at industry and woreda‐industry‐wide levels. We then analyse the relationship between markup dispersion and firm entry rates in local markets. Results show that higher markup dispersion significantly correlates with lower entry rates into a market, even in the presence of expected positive average markups. Specifically, an increase in dispersion from its median to the values at the 90th percentile of the distribution is related to a 4.2% point lower entry rate. This result is robust to different estimation methods as well as to different definitions of the key variables.
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1) Track citations by RSS feed
Downloads: (external link)
Working Paper: Markups Dispersion and Firm Entry: Evidence from Ethiopia (2018)
This item may be available elsewhere in EconPapers: Search for items with the same title.
Export reference: BibTeX
RIS (EndNote, ProCite, RefMan)
Persistent link: https://EconPapers.repec.org/RePEc:bla:obuest:v:83:y:2021:i:2:p:299-327
Ordering information: This journal article can be ordered from
http://www.blackwell ... bs.asp?ref=0305-9049
Access Statistics for this article
Oxford Bulletin of Economics and Statistics is currently edited by Christopher Adam, Anindya Banerjee, Christopher Bowdler, David Hendry, Adriaan Kalwij, John Knight and Jonathan Temple
More articles in Oxford Bulletin of Economics and Statistics from Department of Economics, University of Oxford Contact information at EDIRC.
Bibliographic data for series maintained by Wiley Content Delivery ().