{
  "title": "Global Market Power and its Macroeconomic Implications",
  "publication": "IMF Working Papers, June 15, 2018",
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  "summary": "We estimate the evolution of markups of publicly traded firms in 74 economies from 1980-2016. In advanced economies, markups have increased by an average of 39 percent since 1980.",
  "sections": [
    {
      "heading": "Key findings",
      "content": "- Estimated evolution of markups for publicly traded firms in 74 economies from 1980-2016.\n- In advanced economies, markups have increased by an average of 39 percent since 1980.\n- The increase in markups in advanced economies is broad-based across industries and countries, and driven by the highest markup firms in each economic sector.\n- For emerging markets and developing economies, there is less evidence of a rise in markups.\n- Positive relation between firm markups and other indicators of market power, such as profits or industry concentration.\n- Association between markups and the labor share is generally negative."
    },
    {
      "heading": "Firm-level relations: investment, innovation, and labor share",
      "content": "- Evidence of a non-monotonic relation between markups and both investment and innovation at the firm level:\n  - Higher markups are correlated initially with increasing investment and innovation rates.\n  - Beyond a point, higher markups are correlated with decreasing investment and innovation rates.\n- The non-monotonicity is more pronounced for firms that are closer to the technological frontier.\n- More concentrated industries feature a more negative relation between markups and investment and innovation.\n\n---\n\n Content in this bundle\n\n- Global Market Power and its Macroeconomic Implications, WP/18/137, June 2018\n  - Global Market Power and its Macroeconomic Implications, WP/18/137, June 2018 (Markdown version){rel=\"alternate\" type=\"text/markdown\"}\n  - Global Market Power and its Macroeconomic Implications, WP/18/137, June 2018 (PDF){rel=\"external\" type=\"application/pdf\"}\n\n---\n\nSource: https://www.imf.org/en/publications/wp/issues/2018/06/15/global-market-power-and-its-macroeconomic-implications-45975"
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    "Authors: Federico J Diez, Daniel Leigh, Suchanan Tambunlertchai",
    "Published: June 15, 2018",
    "Series: IMF Working Papers",
    "DOI: https://doi.org/10.5089/9781484361672.001",
    "Estimated evolution of markups for publicly traded firms in 74 economies from 1980-2016.",
    "In advanced economies, markups have increased by an average of 39 percent since 1980.",
    "The increase in markups in advanced economies is broad-based across industries and countries, and driven by the highest markup firms in each economic sector.",
    "For emerging markets and developing economies, there is less evidence of a rise in markups.",
    "Positive relation between firm markups and other indicators of market power, such as profits or industry concentration.",
    "Association between markups and the labor share is generally negative.",
    "Evidence of a non-monotonic relation between markups and both investment and innovation at the firm level:",
    "The non-monotonicity is more pronounced for firms that are closer to the technological frontier.",
    "More concentrated industries feature a more negative relation between markups and investment and innovation.",
    "**Global Market Power and its Macroeconomic Implications, WP/18/137, June 2018**"
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