## Global Declining Competition

_IMF Working Papers, April 26, 2019_

## Source details

**Canonical URL:** [Global Declining Competition](https://www.imf.org/en/publications/wp/issues/2019/04/26/global-declining-competition-46721)

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- [Markdown version](/en/publications/wp/issues/2019/04/26/global-declining-competition-46721/index.md)
- [Structured JSON version](/en/publications/wp/issues/2019/04/26/global-declining-competition-46721/index.json)
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## Bibliographic details
- Authors: Federico J Diez, Jiayue Fan, Carolina Villegas-Sánchez
- Published: April 26, 2019
- Series: IMF Working Papers
- DOI: https://doi.org/10.5089/9781498311113.001

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### Key findings
- Using a new firm-level dataset on private and listed firms from 20 countries, the paper documents five stylized facts on market power in global markets.
- First, competition has declined around the world, measured as a moderate increase in average firm markups during 2000- 2015.
- Second, the markup increase is driven by already high-markup firms (top decile of the markup distribution) that charge increasing markups.
- Third, markups increased mostly among advanced economies but not in emerging markets.
- Fourth, there is a non-monotonic relation between firm size and markups that is first decreasing and then increasing.
- Finally, the increase is mostly driven by increases within incumbents and also by market share reallocation towards high-markup entrants.

### Analytical scope and data
- New firm-level dataset covering private and listed firms from 20 countries.
- Focus on firm markups, firm size, incumbents versus entrants, and market share reallocation.

### Subjects and keywords
- Subjects: Agroindustries, Competition, Economic sectors, Emerging and frontier financial markets, Financial markets, Production, Productivity, Total factor productivity
- Keywords: Agroindustries, Competition, Emerging and frontier financial markets, firm markup, Firm size, foreign exposure, Global, high-markup firm, incumbent firm, laggard firm, Market power, market share, markup increase, production function, Productivity, TFP, Total factor productivity, WP

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## Content in this bundle

- **Working Paper**
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_Source: https://www.imf.org/en/publications/wp/issues/2019/04/26/global-declining-competition-46721_