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U.S. Market Concentration and Import Competition

Author

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  • Amiti, Mary
  • Heise, Sebastian
Abstract
A rapidly growing literature has shown that market concentration among domestic firms has increased in the U.S. over the last three decades. Using confidential census data for the manufacturing sector, we show that typical measures of concentration, once adjusted for sales by foreign exporters, actually stayed constant between 1992 and 2012. We reconcile these findings by linking part of the increase in domestic concentration to import competition. Although concentration among U.S.-based firms rose, the growth of foreign firms, mostly at the bottom of the sales distribution, counteracted this increase. We find that higher import competition caused a decline in the market shares of the top-20 U.S. firms.

Suggested Citation

  • Amiti, Mary & Heise, Sebastian, 2021. "U.S. Market Concentration and Import Competition," CEPR Discussion Papers 16126, C.E.P.R. Discussion Papers.
    • Handle: RePEc:cpr:ceprdp:16126
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    References listed on IDEAS

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    Cited by:

    1. Alessandra Bonfiglioli & Rosario Crinò & Gino Gancia, 2021. "International Trade with Heterogeneous Firms: Theory and Evidence," CESifo Working Paper Series 9423, CESifo.

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    More about this item

    JEL classification:

    • F14 - International Economics - - Trade - - - Empirical Studies of Trade
    • F60 - International Economics - - Economic Impacts of Globalization - - - General
    • L11 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Production, Pricing, and Market Structure; Size Distribution of Firms

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