Markup dispersion and firm entry : evidence from Ethiopia

dc.contributor.authorDAMOAH, Kaku Attah
dc.contributor.authorGIOVANNETTI, Giorgia
dc.contributor.authorSANFILIPPO, Marco
dc.date.accessioned2021-02-22T15:48:36Z
dc.date.available2021-02-22T15:48:36Z
dc.date.issued2021
dc.descriptionFirst published online: 09 July 2020en
dc.description.abstractThis paper examines whether and to what extent markups can influence structural transformation in a developing country by creating entry barriers. We exploit information from the Ethiopian annual census of manufacturing establishments to estimate markups and their dispersion at industry and woreda-industry-wide levels. We then analyse the relationship between markup dispersion and firm entry rates in local markets. Results show that higher markup dispersion significantly correlates with lower entry rates into a market, even in the presence of expected positive average markups. Specifically, an increase in dispersion from its median to the values at the 90(th)percentile of the distribution is related to a 4.2% point lower entry rate. This result is robust to different estimation methods as well as to different definitions of the key variables.en
dc.format.mimetypeapplication/pdfen
dc.identifier.citationOxford bulletin of economics and statistics, 2021, Vol. 83, No. 2, pp. 299-327en
dc.identifier.doi10.1111/obes.12384
dc.identifier.endpage327en
dc.identifier.issn0305-9049
dc.identifier.issn1468-0084
dc.identifier.issue2en
dc.identifier.startpage299en
dc.identifier.urihttps://hdl.handle.net/1814/70080
dc.identifier.volume83en
dc.language.isoen
dc.orcid.uploadTRUE
dc.publisherWileyen
dc.relation.ispartofOxford bulletin of economics and statisticsen
dc.titleMarkup dispersion and firm entry : evidence from Ethiopiaen
dc.typeArticle
dspace.entity.typePublication
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