The session will take place on site from 12:00 – 1:15 pm.
Venue: Juridicum, Adenauerallee 24-42, Bonn
Title: "Trade Wars and the Reallocation of Market Power in Global Export Markets"
By diverting and distorting bilateral trade flows, trade wars shift export patterns and market concentration around the globe. In this paper, we estimate parameters in n-country general equilibrium trade model featuring oligopolistic competition with data from a rich panel of firm-level exports from 11 low and middle-income countries to 165 destinations that
report bilateral and multilateral tariffs to the World Trade Organization. We show that, by affecting entry/exit decisions of large firms active in export markets, a tariff war between two countries results in a significant rise in market concentration and market power globally, driving down welfare.