Antitrust policies and profitability in non-tradable sectors

Besley, Timothy, Fontana, Nicola and Limodio, Nicola (2020) Antitrust policies and profitability in non-tradable sectors. American Economic Review. ISSN 0002-8282 (In Press)

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Abstract

Firms in tradable sectors are more likely to be subject to external competition to limit market power while non-tradable firms are more dependent on domestic policies and institutions. This paper combines an antitrust index available for multiple countries with firm-level data from Orbis covering more than 10 million firms from 90 countries, covering 20 sectors over 10 years and finds that profit margins of firms operating in non-tradable sectors are significantly lower in countries with stronger antitrust policies compared to firms operating in tradable sectors. The results are robust to a wide variety of empirical specifications.

Item Type:	Article
Official URL:	https://www.aeaweb.org/journals/aer
Additional Information:	© 2020 American Economic Association
Divisions:	Economics School of Public Policy ?? SCPP ?? Geography & Environment
Subjects:	H Social Sciences > HG Finance H Social Sciences > HB Economic Theory
Date Deposited:	04 Sep 2020 13:03
Last Modified:	02 Feb 2021 00:10
URI:	http://eprints.lse.ac.uk/id/eprint/106493

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