Global Declining Competition
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Summary:
Using a new firm-level dataset on private and listed firms from 20 countries, we document five stylized facts on market power in global markets. First, competition has declined around the world, measured as a moderate increase in average firm markups during 2000- 2015. Second, the markup increase is driven by already high-markup firms (top decile of the markup distribution) that charge increasing markups. Third, markups increased mostly among advanced economies but not in emerging markets. Fourth, there is a non-monotonic relation between firm size and markups that is first decreasing and then increasing. Finally, the increase is mostly driven by increases within incumbents and also by market share reallocation towards high-markup entrants.
Series:
Working Paper No. 2019/082
Subject:
Agroindustries Competition Economic sectors Emerging and frontier financial markets Financial markets Production Productivity Total factor productivity
English
Publication Date:
April 26, 2019
ISBN/ISSN:
9781498311113/1018-5941
Stock No:
WPIEA2019082
Pages:
42
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