The impact of international intra-firm trade on domestic concentration ratios

Coughlin, Cletus C.; Watkins, Thomas G.

doi:10.1007/bf02464947

Cited by 2 publications

(1 citation statement)

References 14 publications

Supporting

Mentioning

Contrasting

Order By: Relevance

“…Because of the unavailability of these data, I follow the common assumption used in the literature 7 that the exports share of the four largest firms in the industry is the same as their output share. 8 The modification formulaused by Coughlin and Watkins (1985), Lunn (1984), Utton (1982), Weiss and Pascoe (1986), and many others -is: 9 where S 4 is the value of the shipment for the four largest firms (whether domestic or foreign) in the industry; S is the total value of shipments in the industry; X is the value of exports; and M is the value of imports. The correction is made to 380 and 375 manufacturing industries in 1997 and 2002 respectively, for which CR 4 and international trade data are compatible.…”

Section: Modification To the Concentration Ratiomentioning

confidence: 99%

Trade‐Adjusted Concentration Ratios in the US Manufacturing Sector

Abdel-Raouf

2010

International Journal of the Economics of Business

View full text Add to dashboard Cite

This paper incorporates international trade into the four‐firm concentration ratio to get a more realistic measure of market structure in the US manufacturing sector using 1997 and 2002 NAICS data. As expected, trade‐adjusted CR4 is significantly lower than the published CR4. Moreover, the effect of international trade is higher in 2002 than in 1997, offsetting the increase in domestic concentration and leaving the US manufacturing sector in 2002 as competitive as it was in 1997. Furthermore, different tests are used to check the validity of the results. All of them confirm that trade‐adjusted CR4s are significantly lower than their published counterparts.Concentration Ratio, International Trade, Manufacturing Sector, NAICS, L11, L60,

show abstract

Section: Modification To the Concentration Ratiomentioning

confidence: 99%