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Title:Manufacturers and retailers in the global economy PDF Logo
Authors:Raff, Horst
Schmitt, Nicolas
Issue Date:2011
Series/Report no.:Kiel Working Papers 1711
Abstract:We develop a general-equilibrium model to capture key features of the retailing and of the manufacturing industry in order to understand how these two industries interact and how labor is allocated between them. We show that the observed shift in employment from manufacturing to retailing, the rise in retailer product assortment and the emergence of slotting allowances in many retail markets are consistent with the global integration of product markets, while higher retail market concentration is best explained by technological change in retailing. We also identify a novel benefit from market integration consisting of efficiency gains in the vertical distribution chain.
Subjects:Classification: international trade
product variety
retailing
slotting allowance
multi-product firm
JEL:F12
F15
L13
Document Type:Working Paper
Appears in Collections:Kieler Arbeitspapiere, IfW
Publikationen von Forscherinnen und Forschern des IfW

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