Within-Industry Specialization and Global Market Power
Year: 2020
Type: article
Abstract: Export price levels exhibit tremendous cross-national and spatial variation, even within narrowly defined industries. Standard theories attribute this variation to within-industry quality specialization. This paper argues that a significant portion of the export price variation is driven by rich and remote economies specializing in high-market power segments of industries. I also argue that this particular pattern of specialization (i) accounts for 30 percent of the overall gains from trade, and (ii) explains more than 37 percent of the observed cross-national income inequality. (JEL D43, F12, F13, F14, L15, L22, O19)
DOI: 10.1257/mic.20170336
Author: Ahmad Lashkaripour
Institutions: Indiana University Bloomington, Indiana University
Language: English
Topic: Global trade and economics
Domain: Social Sciences
Open Access status: green
OpenAlex ID: W3004233385