Prices, Markups, and Trade Reform

Econometrica

Volumn 84, Issue 2, 2016, Pages 445-510

  De Loecker, Jan ^a   Goldberg, Pinelopi K ^b   Khandelwal, Amit K ^c   Pavcnik, Nina ^d  

^a PRINCETON UNIVERSITY   (United States)

^b YALE UNIVERSITY   (United States)

^c The Sanford C Bernstein Co Center for Leadership and Ethics   (United States)

^d DARTMOUTH COLLEGE   (United States)

Author keywords

Trade liberalization; Input tariffs; Pass through; Production function estimation; Variable markups

Indexed keywords

EID: 84961252962     PISSN: 00129682     EISSN: 14680262     Source Type: Journal    
DOI: 10.3982/ECTA11042     Document Type: Article

References (59)

1. Ackerberg, D. A., K. Caves, and G. Frazer (2015): "Identification Properties of Recent Production Function Estimators, " Econometrica, 83 (6), 2411-2451. 10.3982/ECTA13408
2. Aghion, P., N. Bloom, R. Blundell, R. Griffith, and P. Howitt (2005): "Competition and Innovation: An Inverted-U Relationship, " Quarterly Journal of Economics, 120 (2), 701-728.
3. Amiti, M., and J. Konings (2007): "Trade Liberalization, Intermediate Inputs, and Productivity: Evidence From Indonesia, " American Economic Review, 97 (5), 1611-1638.
4. Arkolakis, C., A. Costinot, D. Donaldson, and A. Rodríguez-Clare (2012): "The Elusive Pro-Competitive Effects of Trade, " Report, Yale University.
5. Arkolakis, C., A. Costinot, and A. Rodríguez-Clare (2012): "New Trade Models, Same Old Gains?" American Economic Review, 102 (1), 94-130.
6. Atkeson, A., and A. Burstein (2008): "Pricing-to-Market, Trade Costs, and International Relative Prices, " American Economic Review, 98 (5), 1998-2031.
7. Atkin, D., and D. Donaldson (2014): "Who Is Getting Globalized? The Size and Implications of Intranational Trade Costs, " Report, MIT.
8. Baumol, W. J., J. C. Panzar, and R. D. Willig (1983): "Contestable Markets: An Uprising in the Theory of Industry Structure: Reply, " American Economic Review, 73 (3), 491-496.
9. Bernard, A. B., J. Eaton, J. B. Jensen, and S. Kortum (2003): "Plants and Productivity in International Trade, " American Economic Review, 93 (4), 1268-1290.
10. Bernard, A. B., S. J. Redding, and P. K. Schott (2010): "Multiple-Product Firms and Product Switching, " American Economic Review, 100 (1), 70-97.
11. Bernard, A. B., S. J. Redding, and P. K. Schott (2011): "Multi-Product Firms and Trade Liberalization, " Quarterly Journal of Economics, 126 (3), 1271-1318.
12. Berry, S. (1994): "Estimating Discrete-Choice Models of Product Differentiation, " RAND Journal of Economics, 25 (2), 242-262.
13. Bloom, N., and J. Van Reenen (2007): "Measuring and Explaining Management Practices Across Firms and Countries, " Quarterly Journal of Economics, 122 (4), 1351-1408.
14. Bloom, N., and J. Van Reenen (2010): "Why Do Management Practices Differ Across Firms and Countries?" Journal of Economic Perspectives, 24 (1), 203-224.
15. Corden, W. M. (1966): "The Structure of a Tariff System and the Effective Protective Rate, " Journal of Political Economy, 74 (3), 221-237.
16. De Loecker, J. (2011): "Product Differentiation, Multiproduct Firms, and Estimating the Impact of Trade Liberalization on Productivity, " Econometrica, 79 (5), 1407-1451. 10.3982/ECTA7617
17. De Loecker, J. (2013): "Detecting Learning by Exporting, " American Economic Journal: Microeconomics, 5 (3), 1-21.
18. De Loecker, J., and P. K. Goldberg (2014): "Firm Performance in a Global Market, " Annual Review of Economics, 6, 201-227.
19. De Loecker, J., and F. Warzynski (2012): "Markups and Firm-Level Export Status, " American Economic Review, 102 (6), 2437-2471.
20. De Loecker, J., P. K. Goldberg, A. Khandelwal, and N. Pavcnik (2016): "Supplement to 'Prices, Markups, and Trade Reform', " Econometrica Supplemental Material, 84, http://dx.doi.org/10.3982/ECTA11042.
21. Debroy, B., and A. Santhanam (1993): "Matching Trade Codes With Industrial Codes, " Foreign Trade Bulletin, 24 (1), 5-27.
22. Eaton, J., and S. Kortum (2002): "Technology, Geography, and Trade, " Econometrica, 70 (5), 1741-1779.
23. Eckel, C., and J. P. Neary (2010): "Multi-Product Firms and Flexible Manufacturing in the Global Economy, " Review of Economic Studies, 77 (1), 188-217. 10.1111/j.1467-937X.2009.00573.x
24. Edmonds, C., V. Midrigan, and Y. Xu (2011): "Competition, Markups and the Gains From International Trade, " Report, Duke University.
25. Feenstra, R. C., and D. Weinstein (2010): "Globalization, Markups, and the U.S. Price Level, " Working Paper 15749, NBER.
26. Foster, L., J. Haltiwanger, and C. Syverson (2008): "Reallocation, Firm Turnover, and Efficiency: Selection on Productivity or Profitability?" American Economic Review, 98 (1), 394-425.
27. Goldberg, P. K. (1995): "Product Differentiation and Oligopoly in International Markets: The Case of the U.S. Automobile Industry, " Econometrica, 63 (4), 891-951.
28. Goldberg, P. K., and R. Hellerstein (2013): "A Structural Approach to Identifying the Sources of Local Currency Price Stability, " Review of Economic Studies, 80 (1), 175-210.
29. Goldberg, P. K., and F. Verboven (2005): "Market Integration and Convergence to the Law of One Price: Evidence From the European Car Market, " Journal of International Economics, 65 (1), 49-73.
30. Goldberg, P. K., A. K. Khandelwal, N. Pavcnik, and P. Topalova (2009): "Trade Liberalization and New Imported Inputs, " American Economic Review, 99 (2), 494-500.
31. Goldberg, P. K., A. K. Khandelwal, N. Pavcnik, and P. Topalova (2010a): "Imported Intermediate Inputs and Domestic Product Growth: Evidence From India, " Quarterly Journal of Economics, 125 (4), 1727-1767.
32. Goldberg, P. K., A. K. Khandelwal, N. Pavcnik, and P. Topalova (2010b): "Multiproduct Firms and Product Turnover in the Developing World: Evidence From India, " Review of Economics and Statistics, 92 (4), 1042-1049.
33. Goyal, S. (1996): "Political Economy of India's Economic Reforms, " Working Paper, Institute for Studies in Industrial Development.
34. Hall, R. E. (1988): "The Relation Between Price and Marginal Cost in U.S. Industry, " Journal of Political Economy, 96 (5), 921-947.
35. Halpern, L., M. Koren, and A. Szeidl (2011): "Imports and Productivity, " Discussion Paper 5139, CEPR.
36. Harrison, A. E. (1994): "Productivity, Imperfect Competition and Trade Reform: Theory and Evidence, " Journal of International Economics, 36 (1-2), 53-73.
37. Hasan, R., D. Mitra, and K. Ramaswamy (2007): "Trade Reforms, Labor Regulations, and Labor-Demand Elasticities: Empirical Evidence From India, " Review of Economics and Statistics, 89 (3), 466-481.
38. Hsieh, C.-T., and P. J. Klenow (2009): "Misallocation and Manufacturing TFP in China and India, " Quarterly Journal of Economics, 124 (4), 1403-1448.
39. Katayama, H., S. Lu, and J. R. Tybout (2009): "Firm-Level Productivity Studies: Illusions and a Solution, " International Journal of Industrial Organization, 27 (3), 403-413.
40. Khandelwal, A. K. (2010): "The Long and Short (of) Quality Ladders, " Review of Economic Studies, 77 (4), 1450-1476.
41. Kremer, M. (1993): "The O-Ring Theory of Economic Development, " Quarterly Journal of Economics, 108 (3), 551-575.
42. Krugman, P. (1980): "Scale Economies, Product Differentiation, and the Pattern of Trade, " American Economic Review, 70 (5), 950-959.
43. Kugler, M., and E. Verhoogen (2011): "Prices, Plant Size, and Product Quality, " Review of Economic Studies, 79, 307-339.
44. Levinsohn, J. (1993): "Testing the Imports-as-Market-Discipline Hypothesis, " Journal of International Economics, 35 (1-2), 1-22.
45. Levinsohn, J., and A. Petrin (2003): "Estimating Production Functions Using Inputs to Control for Unobservables, " Review of Economic Studies, 70 (2), 317-341.
46. Mayer, T., M. J. Melitz, and G. I. P. Ottaviano (2014): "Market Size, Competition, and the Product Mix of Exporters, " American Economic Review, 104 (2), 495-536.
47. Melitz, M. J. (2003): "The Impact of Trade on Intra-Industry Reallocations and Aggregate Industry Productivity, " Econometrica, 71 (6), 1695-1725. 10.1111/1468-0262.00467
48. Melitz, M. J., and G. I. P. Ottaviano (2008): "Market Size, Trade, and Productivity, " Review of Economic Studies, 75 (1), 295-316. 10.1111/j.1467-937X.2007.00463.x
49. Nakamura, E., and D. Zerom (2010): "Accounting for Incomplete Pass-Through, " Review of Economic Studies, 77 (3), 1192-1230.
50. Olley, G. S., and A. Pakes (1996): "The Dynamics of Productivity in the Telecommunications Equipment Industry, " Econometrica, 64 (6), 1263-1297.
51. Panagariya, A. (2008): India: The Emerging Giant. Oxford: Oxford University Press.
52. Panzar, J. C. (1989): "Technological Determinants of Firm and Industry Structure, " in Handbook of Industrial Organization, Vol. 1, ed. by R. Schmalensee and R. Willig . Amsterdam: Elsevier, Chapter 1, 3-59.
53. Pavcnik, N. (2002): "Trade Liberalization, Exit, and Productivity Improvement: Evidence From Chilean Plants, " Review of Economic Studies, 69 (1), 245-276.
54. Peters, M. (2012): "Heterogeneous Mark-Ups and Endogenous Misallocation, " Report, MIT.
55. Sivadasan, J. (2009): "Barriers to Competition and Productivity: Evidence From India, " The B.E. Journal of Economic Analysis & Policy, 9 (1), 42.
56. Topalova, P. (2010): "Factor Immobility and Regional Impacts of Trade Liberalization: Evidence on Poverty From India, " American Economic Journal: Applied Economics, 2 (4), 1-41.
57. Topalova, P., and A. K. Khandelwal (2011): "Trade Liberalization and Firm Productivity: The Case of India, " Review of Economics and Statistics, 93 (3), 995-1009.
58. Verhoogen, E. A. (2008): "Trade, Quality Upgrading, and Wage Inequality in the Mexican Manufacturing Sector, " Quarterly Journal of Economics, 123 (2), 489-530.
59. Wooldridge, J. M. (2009): "On Estimating Firm-Level Production Functions Using Proxy Variables to Control for Unobservables, " Economics Letters, 104 (3), 112-114. 10.1016/j.econlet.2009.04.026