International trade and retail market performance and structure: Theory and empirical evidence
Philipp Meinen and
Horst Raff ()
No 19/2018, Discussion Papers from Deutsche Bundesbank
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 performance 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 (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 and nep-int
References: View references in EconPapers View complete reference list from CitEc
Citations: Track citations by RSS feed
Downloads: (external link)
Journal Article: International trade and retail market performance and structure: Theory and empirical evidence (2018)
Working Paper: International Trade and Retail Market Performance and Structure: Theory and Empirical Evidence (2018)
Working Paper: International trade and retail market performance and structure: Theory and empirical evidence (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:zbw:bubdps:192018
Access Statistics for this paper
More papers in Discussion Papers from Deutsche Bundesbank Contact information at EDIRC.
Bibliographic data for series maintained by ZBW - Leibniz Information Centre for Economics ().