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International Trade and Retail Market Performance and Structure: Theory and Empirical Evidence

Philipp Meinen and Horst Raff ()

No 7099, CESifo Working Paper Series from CESifo Group Munich

Abstract: Based on a theoretical model featuring heterogeneous retailers that may source globally and operate as chains, we derive a number of hypotheses that link trade integration to retail firm performance and to the structure of retail markets. We empirically test these predictions using Danish microdata for the period 1999 to 2008. We find that importing retailers are larger, more profitable, and have a higher propensity to have multiple shops than domestically sourcing firms. While this is partly due to self-selection, we also present evidence for improved perfor-mance caused by firms’ importing activities. Moreover, we find that retail imports are associated with a higher exit probability of small retailers and greater local retail market concentration. Overall, we obtain support for the model’s predictions and argue that the observed adjustments may imply additional gains from trade absent from models lacking a distribution sector.

Keywords: international trade; consumer goods; retailing; retail chains; market concentration (search for similar items in EconPapers)
JEL-codes: F12 L11 (search for similar items in EconPapers)
New Economics Papers: this item is included in nep-bec, nep-ind, nep-int and nep-knm
Date: 2018
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1) Track citations by RSS feed

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Related works:
Journal Article: International trade and retail market performance and structure: Theory and empirical evidence (2018) Downloads
Working Paper: International trade and retail market performance and structure: Theory and empirical evidence (2018) Downloads
Working Paper: International trade and retail market performance and structure: Theory and empirical evidence (2018) Downloads
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