Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/269442 
Year of Publication: 
2016
Series/Report no.: 
FERDI Working Paper No. P161
Publisher: 
Fondation pour les études et recherches sur le développement international (FERDI), Clermont-Ferrand
Abstract: 
This paper identifies the effect of trade policy on market power through new data and a new identication strategy. We use a large dataset containing export values and quantities by product and destination for all exporting firms in 12 developing and emerging countries over several years, merged with destination-product specific information on tariffs and non-tariff barriers. We identify market power by observing how exporting firms price discriminate across markets in reaction to variations in bilateral exchange rates. Pricing-to-market is prevalent in all regions of our sample, even among small firms, although it is increasing in firm size, in accordance with theory. More importantly, we find that the effect of non-tariff measures is not isomorphic to that of tariffs: the pricing-to-market behavior we observe suggests that, while tariffs reduce the market power of foreign firms through classic rent-shifting effects, non-tariff measures alter market structure and reinforce the market power of non-exiting firms, domestic and foreign ones alike. Keywords: Trade policy, non-tariff measures, tariffs, exchange rate, price discrimination
Subjects: 
trade policy
non-tariff measures
tariffs
exchange rate
price discrimination
JEL: 
F12
F13
F14
D40
F31
Document Type: 
Working Paper

Files in This Item:
File
Size





Items in EconStor are protected by copyright, with all rights reserved, unless otherwise indicated.