Department of Economics and Business Economics

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

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  • Philipp Meinen
  • ,
  • Horst Raff, Christian-Albrechts-Universität zu Kiel

We use Danish microdata for the period 1999 to 2008 to examine how greater consumer goods imports affect retail market performance and structure. Based on a propensity score matching approach, we estimate that retailers that start to import have 8% greater sales, 6% greater profits, and 2% greater markups in the year of import initiation compared to non-importing retailers. These differences are quite persistent. For instance, we estimate that cumulative sales of import starters are up to 30% higher on average after three years than for comparable non-importers. We also find that imports are associated with a higher exit probability of small retailers and greater local retail market concentration. We argue that the observed adjustments may imply additional gains from trade absent from models lacking a distribution sector.

Original languageEnglish
JournalJournal of International Economics
Volume115
Pages (from-to)99-114
Number of pages16
ISSN0022-1996
DOIs
Publication statusPublished - 1 Nov 2018

Bibliographical note

AM haves fra Elsevier

    Research areas

  • CHAINS, Consumer goods, EXPORTS, IMPORTS, International trade, Market concentration, PRODUCTIVITY, PROPENSITY SCORE, Retail chains, Retailing

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