OECD Trade Policy Papers

ISSN :
1816-6873 (online)
DOI :
10.1787/18166873
Hide / Show Abstract
This series is designed to make available to a wider readership selected trade policy studies prepared for use within the OECD.

NB. No. 1 to No. 139 were released under the previous series title OECD Trade Policy Working Papers.

 

Market Structure in the Distribution Sector and Merchandise Trade You or your institution have access to this content

Click to Access: 
Author(s):
Hildegunn Kyvik Nordås1, Massimo Geloso Grosso, Enrico Pinali1
Author Affiliations
  • 1: OECD, France

Publication Date
01 Feb 2008
Bibliographic information
No.:
68
Pages
66
DOI
10.1787/244328264654

Hide / Show Abstract

This study aims at exploring how recent developments in the retail sector affect trade in consumer goods. It focuses on three areas of development: i) internationalisation; ii) market structure; and iii) the growing market share of retailers? private labels. It distinguishes between food and non-food products as there are significant differences between the sourcing patterns of these two product categories. The gravity model is extended by integrating a retail intermediary sector, and a novel estimation technique (zero inflated Poisson) is proposed. It is found that the foreign operations of a retailer are positively related to imports from the host to the home country of the retailer. The rate of market concentration and the market share of private labels are both found to be negatively related to imports of food and positively related to imports of non-food consumer goods, but private labels tend to shift sourcing towards low-income countries. Lower tariffs yield a stronger import response in countries with a less concentrated retail sector, particularly for food items suggesting that competition policy and trade policy are complementary. In developing countries the entry of international retailers can have a positive impact on exports and product quality.
Keywords:
retail sector, gravity model, trade in consumer goods
JEL Classification:
  • F12: International Economics / Trade / Models of Trade with Imperfect Competition and Scale Economies