{
  "title": "Chart of the Week: The Rise of Corporate Giants",
  "publication": "IMF Blog, June 6, 2018",
  "sourceUrl": "https://www.imf.org/en/blogs/articles/2018/06/06/blog-the-rise-of-corporate-giants",
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  "summary": "Authors: Federico J. Díez, Daniel Leigh",
  "sections": [
    {
      "heading": "Overview",
      "content": "- Authors: Federico J. Díez, Daniel Leigh\n- Publication date: June 6, 2018\n- Scope: Analysis based on an upcoming IMF working paper using data for publicly listed companies from 74 countries.\n- Measure used: Average markups on goods and services across all companies (markup defined as the ratio of the price charged to the marginal cost of producing an additional unit)."
    },
    {
      "heading": "Key findings",
      "content": "- Markups in advanced economies:\n  - Increased since the 1980s by 43 percent on average.\n  - The upward trend has accelerated during the present decade.\n- Markups in emerging market and developing economies:\n  - Rose by 5 percent on average since 1990.\n- Distributional pattern across firms:\n  - Increase in markups in advanced economies is mostly driven by “superstar” firms that further increased their market power.\n  - Markups in other firms have essentially been flat.\n- Sectoral breadth:\n  - The pattern of rising markups among superstar firms is found in all broad economic sectors, not just information and communication technology."
    },
    {
      "heading": "Implications for investment, innovation, and labor",
      "content": "- Investment and innovation:\n  - Starting from low levels, higher markups are initially associated with increasing investment and innovation.\n  - This relationship becomes negative when market power becomes too strong.\n  - The negative link between markups and investment and innovation is stronger in industries featuring higher degrees of market concentration.\n- Labor share:\n  - The paper finds a negative association in firms between labor shares and markups.\n  - Implication: the labor share of income declines in industries where market power rises; the share of revenue going to profits increases."
    },
    {
      "heading": "Policy considerations and open questions",
      "content": "- Drivers under debate (possible culprits listed in the source):\n  - The rise of intangible assets such as software.\n  - Network effects (when a product’s value to the user increases as the number of users of the product grows).\n  - Weaker anti-trust enforcement.\n- Policy implications depend on which factors are responsible for the increase in global market power.\n- Recommendation: More research is needed to discriminate between the potential drivers.\n- Convening: An upcoming conference, organized by the IMF, the World Bank, and the Organisation for Economic Co-operation and Development, will delve into corporate market power, competition policies, product market (de)regulation, and their macroeconomic effects."
    },
    {
      "heading": "Related media",
      "content": "- Video mentioned: “Digitalization and the New Gilded Age” (presented during a seminar at the 2018 IMF-World Bank Spring Meetings).\n\nSource: Chart of the Week: The Rise of Corporate Giants, IMF blog, June 6, 2018.\n\n---\n\n Content in this bundle\n\n- 本周图表：企业巨头的崛起，作者：Federico J. Díezt 和Daniel Leigh，2018年6月6日\n  - 本周图表：企业巨头的崛起，作者：Federico J. Díezt 和Daniel Leigh，2018年6月6日 (Markdown version){rel=\"alternate\" type=\"text/markdown\"}\n  - 本周图表：企业巨头的崛起，作者：Federico J. Díezt 和Daniel Leigh，2018年6月6日 (PDF){rel=\"external\" type=\"application/pdf\"}\n- 今週のグラフ：巨大企業の台頭; フェデリコ・J・ディエス、ダニエル・リー, IMF ブログ 2018年6月6日掲載\n  - 今週のグラフ：巨大企業の台頭; フェデリコ・J・ディエス、ダニエル・リー, IMF ブログ 2018年6月6日掲載 (Markdown version){rel=\"alternate\" type=\"text/markdown\"}\n  - 今週のグラフ：巨大企業の台頭; フェデリコ・J・ディエス、ダニエル・リー, IMF ブログ 2018年6月6日掲載 (PDF){rel=\"external\" type=\"application/pdf\"}\n- Диаграмма недели: возвышение корпоративных гигантов\n  - Диаграмма недели: возвышение корпоративных гигантов (Markdown version){rel=\"alternate\" type=\"text/markdown\"}\n  - Диаграмма недели: возвышение корпоративных гигантов (PDF){rel=\"external\" type=\"application/pdf\"}\n\n---\n\n References\n\n- Español,\n- Português\n- https://www.imf.org/wp-content/uploads/2018/06/BLOG-1024x600-IT-engineer-in-action-baranozdemir-iStock-147456329-1.jpg\n- concentration and market power\n- IMF working paper\n- https://www.imf.org/wp-content/uploads/2018/06/eng-may-30-cotw-corporategiants-1.png\n\nSource: https://www.imf.org/en/blogs/articles/2018/06/06/blog-the-rise-of-corporate-giants"
    }
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    "[Markdown version](/en/blogs/articles/2018/06/06/blog-the-rise-of-corporate-giants/index.md)",
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    "Authors: Federico J Dez, Daniel Leigh",
    "Published: June 6, 2018",
    "Authors: Federico J. Díez, Daniel Leigh",
    "Publication date: June 6, 2018",
    "Scope: Analysis based on an upcoming IMF working paper using data for publicly listed companies from 74 countries.",
    "Measure used: Average markups on goods and services across all companies (markup defined as the ratio of the price charged to the marginal cost of producing an additional unit).",
    "Markups in advanced economies:",
    "Markups in emerging market and developing economies:",
    "Distributional pattern across firms:",
    "Sectoral breadth:",
    "Investment and innovation:",
    "Labor share:",
    "Drivers under debate (possible culprits listed in the source):",
    "Policy implications depend on which factors are responsible for the increase in global market power.",
    "Recommendation: More research is needed to discriminate between the potential drivers.",
    "Convening: An upcoming conference, organized by the IMF, the World Bank, and the Organisation for Economic Co-operation and Development, will delve into corporate market power, competition policies, product market (de)regulation, and their macroeconomic effects.",
    "Video mentioned: “Digitalization and the New Gilded Age” (presented during a seminar at the 2018 IMF-World Bank Spring Meetings).",
    "**本周图表：企业巨头的崛起，作者：Federico J. Díezt 和Daniel Leigh，2018年6月6日**",
    "**今週のグラフ：巨大企業の台頭; フェデリコ・J・ディエス、ダニエル・リー, IMF ブログ 2018年6月6日掲載**",
    "**Диаграмма недели: возвышение корпоративных гигантов**",
    "[Español,](https://blog-dialogoafondo.imf.org/?p=9326)",
    "[Português](http://www.imf.org/pt/News/Articles/2018/06/07/blog-the-rise-of-corporate-giants)",
    "[https://www.imf.org/wp-content/uploads/2018/06/BLOG-1024x600-IT-engineer-in-action-baranozdemir-iStock-147456329-1.jpg](https://www.imf.org/wp-content/uploads/2018/06/BLOG-1024x600-IT-engineer-in-action-baranozdemir-iStock-147456329-1.jpg)",
    "[concentration and market power](http://www.imf.org/external/mmedia/view.aspx?vid=5772879577001)",
    "[IMF working paper](http://www.imf.org/en/Publications/WP/Issues/2018/06/15/Global-Market-Power-and-its-Macroeconomic-Implications-45975)",
    "[https://www.imf.org/wp-content/uploads/2018/06/eng-may-30-cotw-corporategiants-1.png](https://www.imf.org/wp-content/uploads/2018/06/eng-may-30-cotw-corporategiants-1.png)"
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