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School of Economics and Finance

No. 883: Concentration in International Markets: Evidence from US Imports

Alessandra Bonfiglioli , Queen Mary University of London and CEPR
Rosario Crinò , Università Cattolica del Sacro Cuore, Dept. of Economics and Finance, CEPR and CESifo
Gino Gancia , Queen Mary University of London, CREi and CEPR

February 28, 2019

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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 country of origin. The fall in concentration is driven by the extensive margin: the number of exporting firm has grown, and the number of exported products has fallen 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. These facts suggest that intensified competition in international markets coexists with growing concentration among national producers.

J.E.L classification codes: E23, F12, F14, L11, R12

Keywords:Superstar Firms, Concentration, US Imports, Firm Heterogeneity, International Trade