Skip to Main content Skip to Navigation
Journal articles

Trade Policy and Market Power: Firm-Level Evidence

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.
Document type :
Journal articles
Complete list of metadatas

https://hal-amu.archives-ouvertes.fr/hal-02394864
Contributor : Elisabeth Lhuillier <>
Submitted on : Thursday, December 5, 2019 - 9:32:35 AM
Last modification on : Thursday, October 8, 2020 - 3:31:03 AM

Links full text

Identifiers

Collections

Relations

Citation

Alan Asprilla, Nicolas Berman, Olivier Cadot, Melise Jaud. Trade Policy and Market Power: Firm-Level Evidence. International Economic Review, Wiley, 2019, 60 (4), pp.1647-1673. ⟨10.1111/iere.12409⟩. ⟨hal-02394864⟩

Share

Metrics

Record views

87