International trade and retail market performance and structure: Theory and empirical evidence

Abstract

Standard-Nutzungsbedingungen:Die Dokumente auf EconStor dürfen zu eigenen wissenschaftlichen Zwecken und zum Privatgebrauch gespeichert und kopiert werden.Sie dürfen die Dokumente nicht für öffentliche oder kommerzielle Zwecke vervielfältigen, öffentlich ausstellen, öffentlich zugänglich machen, vertreiben oder anderweitig nutzen.Sofern die Verfasser die Dokumente unter Open-Content-Lizenzen (insbesondere CC-Lizenzen) zur Verfügung gestellt haben sollten, gelten abweichend von diesen Nutzungsbedingungen die in der dort genannten Lizenz gewährten Nutzungsrechte. 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 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.

Tariff Pass-through in Wholesaling: Evidence from Firm-level Data in Japan✰

“…This finding indicates that importing wholesalers have margin ratios 1 percentage-point higher than those of non-importing wholesalers. The higher margin ratio of importing wholesalers is consistent with the result by Meinen and Raff (2018), that importing wholesalers have 2% greater markups, as mentioned in Section 1.…”

“…The third strand is the literature that examines the firm-level performance of wholesalers and/or retailers in the context of international trade (e.g., Bernard et al, 2010;Meinen and Raff, 2018). For example, to examine how increased consumer goods imports affect retail market performance and structure, Meinen and Raff (2018) investigated the performance of retailers in Denmark for the period from 1999 to 2008.…”

Does competition and foreign investment spur industrial efficiency?: firm-level evidence from Indonesia

“…Foreign-owned and globally oriented firms in Indonesia pay substantially higher wage premiums than domestic and (Javorcik et al, 2012). An alternative notion is that more liberalization of investment and trade (exportsimports) is related to increasing market concentration, suggesting that the effects of liberalizing may benefit most productive companies to a large extent (Li and Miao, 2018;Meinen and Raff, 2018).…”

Indonesian Market Concentration on The Non-Oil and Gas Commodity Before and During Covid-19 Pandemic

“…Besides product differentiation, the modern trade theory emphasizes the importance of economic scale and technology as the additional factor in determining the international trade pattern. This result is in line with the globalization development and has become one of a country's determining factors in competing in the global market (Dowling, 2008;Meinen & Raff, 2018). The international trade activity also discusses the comparative advantage theory proposed by David Ricardo.…”