Working Paper

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

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collection.link.5
https://openknowledge.worldbank.org/handle/10986/9
collection.name.5
Policy Research Working Papers
dc.contributor.author
Damoah, Kaku Attah
dc.date.accessioned
2019-12-13T21:53:06Z
dc.date.available
2019-12-13T21:53:06Z
dc.date.issued
2019-12
dc.date.lastModified
2019-12-14T05:11:11Z
dc.description.abstract
This paper investigates the impact of Ghana's World Trade Organization (WTO) accession on firm-level product and labor market imperfections. The paper exploits a rich dataset of firm-level information to estimate both 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 paper contributes to the literature by identifying channels through which allocative inefficiencies and misallocation can persist even after trade liberalization.
en
dc.identifier
http://documents.worldbank.org/curated/en/414481576075847938/Markups-Market-Imperfections-and-Trade-Openness-Evidence-from-Ghana
dc.identifier.uri
http://hdl.handle.net/10986/33023
dc.language
English
dc.publisher
World Bank, Washington, DC
dc.relation.ispartofseries
Policy Research Working Paper;No. 9079
dc.rights
CC BY 3.0 IGO
dc.rights.holder
World Bank
dc.rights.uri
http://creativecommons.org/licenses/by/3.0/igo
dc.subject
MARKET POWER
dc.subject
MARKET IMPERFECTION
dc.subject
TRADE OPENNES
dc.subject
WTO
dc.subject
LABOR MARKET
dc.subject
COMPETITIVENES
dc.title
Markups, Market Imperfections, and Trade Openness
en
dc.title.subtitle
Evidence from Ghana
en
dc.type
Working Paper
en
okr.date.disclosure
2019-12-11
okr.doctype
Publications & Research
okr.doctype
Publications & Research :: Policy Research Working Paper
okr.docurl
http://documents.worldbank.org/curated/en/414481576075847938/Markups-Market-Imperfections-and-Trade-Openness-Evidence-from-Ghana
okr.googlescholar.linkpresent
yes
okr.identifier.doi
10.1596/1813-9450-9079
okr.identifier.externaldocumentum
090224b0873ef8f8_1_0
okr.identifier.internaldocumentum
31629048
okr.identifier.report
WPS9079
okr.imported
true
en
okr.language.supported
en
okr.pdfurl
http://documents.worldbank.org/curated/en/414481576075847938/pdf/Markups-Market-Imperfections-and-Trade-Openness-Evidence-from-Ghana.pdf
en
okr.region.administrative
Africa
okr.region.country
Ghana
okr.topic
International Economics and Trade :: Access to Markets
okr.topic
International Economics and Trade :: Trade Liberalization
okr.topic
International Economics and Trade :: Trade Policy
okr.topic
International Economics and Trade :: World Trade Organization
okr.topic
Social Protections and Labor :: Labor Markets
okr.unit
Knowledge and Strategy Team, Development Economics

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