Retailing and international trade
29 Jan 2016-
About: The article was published on 2016-01-29. It has received 3 citations till now.
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TL;DR: In this article, the authors derive a number of hypotheses that link trade integration to retail firm performance and to the structure of retail markets and empirically test these predictions using Danish microdata for the period 1999 to 2008.
Abstract: Based on a theoretical model featuring heterogeneous retailers that may source globally and operate as chains, we derive a number of hypotheses that link trade integration to retail firm performance and to the structure of retail markets. We empirically test these predictions using Danish microdata for the period 1999 to 2008. We find that importing retailers are larger, more profitable, and have a higher propensity to have multiple shops than domestically sourcing firms. While this is partly due to self-selection, we also present evidence for improved performance caused by firms' importing activities. Moreover, we find that retail imports are associated with a higher exit probability of small retailers and greater local retail market concentration. Overall, we obtain support for the model's predictions and argue that the observed adjustments may imply additional gains from trade absent from models lacking a distribution sector.
7 citations
TL;DR: This paper used Danish microdata for the period 1999 to 2008 to examine how greater consumer goods imports affect retail market performance and structure and found 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.
4 citations
01 Jan 2015
TL;DR: In this article, the authors examined to what extent international trade in consumer goods has contributed to changes in the market conduct of retailers and retail market structure, based on a theoretical model of the retail sector with heterogeneous consumers.
Abstract: This paper examines to what extent international trade in consumer goods has contributed to changes in the market conduct of retailers and retail market structure. Based on a theoretical model of the retail sector with heterogeneous
Additional excerpts
...(30) For FI equal to its lower bound (FI = L 4τ (w − t)(2); see (11)), we have cD = cI , dcI dt = 0, and dcD dt = 1....
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