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Markups, Market Imperfections, and Trade Openness: Evidence from Ghana

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creativeworkseries.issn1564-698X
dc.contributor.authorDamoah, Kaku Attah
dc.date.accessioned2023-08-28T20:16:18Z
dc.date.available2023-08-28T20:16:18Z
dc.date.issued2019-10-31
dc.description.abstractThis article investigates the impact of Ghana’s World Trade Organization (WTO) accession on firm-level product and labor market imperfections. The article exploits a rich dataset of firm-level information to estimate markups and the degree of monopsony power enjoyed by manufacturing firms. The results indicate that price-cost margins declined while the degree of monopsony power increased in the wake of WTO accession. These diverging dynamics suggest that firms compress real wages to offset loss of market power in the product market due to increased international competition. This gives rise to an increase in the market imperfection gap, which gradually erodes the pro-competitive gains from trade. The article contributes to the literature by identifying channels through which allocative inefficiencies and misallocation can persist even after trade liberalization.en
dc.identifier.citationThe World Bank Economic Review
dc.identifier.doi10.1596/40281
dc.identifier.issn0258-6770 (print)
dc.identifier.issn1564-698X (online)
dc.identifier.urihttps://openknowledge.worldbank.org/handle/10986/40281
dc.language.isoen_US
dc.publisherPublished by Oxford University Press on behalf of the World Bank
dc.relation.ispartofseriesWorld Bank Economic Review
dc.rightsCC BY-NC-ND 3.0 IGO
dc.rights.holderWorld Bank
dc.rights.urihttp://creativecommons.org/licenses/by-nc-nd/3.0/igo
dc.subjectMARKUPS
dc.subjectMARKET IMPERFECTIONS
dc.subjectTRADE OPENNESS
dc.subjectAFRICA
dc.subjectGHANA
dc.titleMarkups, Market Imperfections, and Trade Openness: Evidence from Ghanaen
dc.typeJournal Article
dspace.entity.typePublication
okr.associatedcontenthttps://academic.oup.com/wber/article/35/1/92/5610390 Journal website (version of record)
okr.crossref.titleMarkups, Market Imperfections, and Trade Openness: Evidence from Ghana
okr.date.disclosure2023-08-28
okr.doctypePublications & Research::Journal Article
okr.identifier.doi10.1093/wber/lhz025
okr.identifier.doihttp://dx.doi.org/10.1596/40281
okr.language.supporteden
okr.pagenumber92–116
okr.peerreviewAcademic Peer Review
okr.region.countryGhana
okr.region.geographicalWest Africa
okr.topicInternational Economics and Trade::International Trade and Trade Rules
okr.topicInternational Economics and Trade::Trade Liberalization
okr.volume35 (1)
relation.isJournalIssueOfPublication5e228d66-d0bc-491f-b8a9-09ab39725513
relation.isJournalIssueOfPublication.latestForDiscovery5e228d66-d0bc-491f-b8a9-09ab39725513
relation.isJournalOfPublicationc41eae2f-cf94-449d-86b7-f062aebe893f
relation.isJournalVolumeOfPublication3a13adfa-b971-4f6d-9aaa-21ba96efc218
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