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dc.titleGlobalization, Technological Change and Market Power in Latin America: Evidence for Chile and Colombia
dc.contributor.authorBracco, Jessica
dc.contributor.authorBrambilla, Irene
dc.contributor.authorCerimelo, Manuela
dc.contributor.authorCésar, Andrés
dc.contributor.authorFalcone, Guillermo
dc.contributor.orgunitDepartment of Research and Chief Economist
dc.coverageChile
dc.coverageColombia
dc.date.available2025-05-09T00:05:00
dc.date.issue2025-05-09T00:05:00
dc.description.abstractThis paper studies concentration and market power in Chile and Colombia and the role that globalization and automation have had in shaping these two phenomena. Using panels of firm surveys, we compute firm-level markups and industry-level concentration measures. Applying a difference in differences methodology that relies on variation across industries in exposure to robotization technology, import competition from China and tariff declines in US markets due to the signature of free trade agreements, we study the causal effects of these shocks on market power and concentration. We find that, while robotization technology has reduced markups on average, it has increased markups and total factor productivity of top industry firms; that the pro-competitive effect of Chinese imports has indeed led to a decrease in market power of domestic firms; and that increased export opportunities due to free trade agreements have led to an increase in market power, with interesting heterogeneities across the two countries.
dc.format.extent66
dc.identifier.doihttp://dx.doi.org/10.18235/0013531
dc.identifier.urlhttps://publications.iadb.org/publications/english/document/Globalization-Technological-Change-and-Market-Power-in-Latin-America-Evidence-for-Chile-and-Colombia.pdf
dc.language.isoen
dc.publisherInter-American Development Bank
dc.subjectSmall Business
dc.subjectIndustry
dc.subjectTrade Agreement
dc.subjectManufacturing Industry
dc.subjectTariff System
dc.subjectAutomation
dc.subjectImport
dc.subjectLabor Force
dc.subject.jelcodeL11 - Production, Pricing, and Market Structure • Size Distribution of Firms
dc.subject.jelcodeF14 - Empirical Studies of Trade
dc.subject.jelcodeF61 - Microeconomic Impacts
dc.subject.jelcodeO33 - Technological Change: Choices and Consequences • Diffusion Processes
dc.subject.keywordsMark-ups;Market concentration;trade agreements;Robotization
idb.identifier.pubnumberIDB-WP-01686
idb.operationRG-K1198
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