International trade and firm-level markups when location and quality matter

Flora Bellone · Patrick Musso · Lionel J Nesta · Frederic Warzynski C

90 citations0/0 files storedJournal of Economic Geography

No readable copy stored yet — this record is metadata only.

No open-access location is known for this record yet.

Literature note Cite in a project Citation map

Global trade and economics Merger and Competition Analysis Global Trade and Competitiveness

Abstract

In this paper, we estimate firm-level markups and test some micro-level predictions of a model of international trade with heterogeneous firms and endogenous markups. Our theoretical framework is an extended version of the Melitz and Ottaviano (2008) (MO) model that features both quality and spatial differentiation across firms. In line with our model, we find that firm markups are positively related to firm productivity and negatively related to the toughness of local competition. Considering the relationship between firm markups and exports, we find evidence that markups are higher for exporters, what appears to indicate that the quality-enhancing channel overbalances the price-depressing channel of global competition.

Paper brief

Loading…

Cite this work

Citation unavailable for this work.

BibTeX RIS CSL-JSON

No public copy is stored for this record, so only the metadata is cited.

Citations in this library

Citation map →

Stored only when both papers are in the corpus — 90 citations exist upstream.

References

2003The Impact of Trade on Intra-Industry Reallocations and Aggregate Industry Productivity 2003Estimating Production Functions Using Inputs to Control for Unobservables 2003Plants and Productivity in International Trade 2011What Determines Productivity?2005Market Size, Trade, and Productivity 2008Reallocation, Firm Turnover, and Efficiency: Selection on Productivity or Profitability?2012Notes on CEPII’s Distances Measures: The GeoDist Database 2012Markups and Firm-Level Export Status

Cited by

2020Standards, trade margins and product quality: Firm-level evidence from Peru 2019Price-setting behavior in a tourism sharing economy accommodation market: A hedonic price analysis of AirBnB hosts in the caribbean 2018Labor market imperfections, markups and productivity in multinationals and exporters 2022Markups and export behavior: Firm‐level evidence from the French food processing industry 2020Imports and labour market imperfections: Firm-level evidence from France

Explore the map →

Papers that cite the same references — the relational fallback while embeddings are still backfilling.

Imported from OpenAlex (CC0) — nothing here is generated.