Trade Policy and Market Power: Firm-Level Evidence

Alan Asprilla, Nicolas Berman (), Olivier Cadot and Melise Jaud ()
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Alan Asprilla: UNIL - Université de Lausanne = University of Lausanne

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Abstract: This article identifies the effect of trade policy on market power through new data and a new identification strategy. We identify market power by observing how exporting firms price discriminate across markets following variations in bilateral exchange rates. Pricing-to-market is prevalent in all countries in our sample, even among small firms, although it is increasing in firm size. More importantly, we find that the effect of nontariff measures (NTMs) is not isomorphic to that of tariffs. Whereas tariffs reduce the market power of foreign firms through rent-shifting effects, NTMs reinforce the market power of nonexiting firms, domestic and foreign alike.

Date: 2019-11
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Published in International Economic Review, 2019, 60 (4), pp.1647-1673. ⟨10.1111/iere.12409⟩

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Related works:
Journal Article: TRADE POLICY AND MARKET POWER: FIRM‐LEVEL EVIDENCE (2019)
Working Paper: Trade Policy and Market Power: Firm-Level Evidence (2019)
Working Paper: Trade Policy and Market Power: Firm-level Evidence (2018)
Working Paper: Trade Policy and Market Power: Firm-level Evidence (2018)
Working Paper: Trade Policy and Market Power: Firm-level Evidence (2016)
Working Paper: Trade Policy and Market Power: Firm-level Evidence (2016)
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Persistent link: https://EconPapers.repec.org/RePEc:hal:journl:hal-02394864

DOI: 10.1111/iere.12409

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