Working Paper: CEPR ID: DP13566
Authors: Alessandra Bonfiglioli; Rosario Crin; Gino Gancia
Abstract: We use transaction-level data to study changes in the concentration of US imports. Concentration has fallen in the typical industry, while it is stable by industry and origin country. The fall in concentration is driven by the extensive margin: the number of exporting firms has grown, and the number of exported products has fallen relatively more for top firms. Instead, average revenue per product of top firms has increased. At the industry level, top firms are converging, but top firms within country are diverging. Finally, higher concentration from an origin country is associated with a fall in prices, foreign entry and industry growth. These facts suggest that intensified competition in international markets coexists with growing concentration among national producers.
Keywords: superstar firms; concentration; US imports; firm heterogeneity; international trade
JEL Codes: E23; F12; F14; L11; R12
Edges that are evidenced by causal inference methods are in orange, and the rest are in light blue.
| Cause | Effect |
|---|---|
| increase in the number of exporting firms (F10) | fall in concentration in U.S. imports (F14) |
| higher concentration from a single origin country (L66) | lower prices (P22) |
| higher concentration from a single origin country (L66) | increased industry growth (O25) |
| fall in concentration in U.S. imports (F14) | increased competition (L13) |
| higher concentration from a single origin country (L66) | rising concentration among national producers (L59) |
| average revenue per product for top firms (L11) | contraction of product offerings (L14) |