Mary Amiti, Sebastian Heise, 22 June 2021

A number of studies have documented that market concentration among US firms has increased over the last decades, as large firms have grown more dominant. This column examines whether this means that large US firms have more market power in the manufacturing sector. It shows that tougher import competition contributed to the rise in the dominance of large US firms over the last few decades, but also reduced US firms’ market share (as a share of all sales inclusive of foreign firms) in the US market. These findings suggest that US firms’ market power in manufacturing industries has in fact declined as foreign firms’ market share has grown.

William Lincoln, Andrew H. McCallum, 10 July 2018

The number of US firms that export increased dramatically over the past few decades. This column argues that while foreign market entry costs have been stable over time, declines in telecommunications costs, free trade agreements, and economic growth abroad have been vital drivers of the globalisation of US firms.

Pol Antràs, Teresa Fort, Felix Tintelnot, 12 March 2017

A growing body of economic research documents the potential negative effects of increased trade integration, often with a focus on increased Chinese import penetration. This column argues that some US firms benefit significantly from increased import opportunities as they lower their costs and expand. Protectionism in the form of higher domestic tariffs would decrease these domestic firms’ competitiveness both at home and abroad.

Sari Pekkala Kerr, William Kerr, William Lincoln, 16 March 2014

Though skilled immigration is of great importance to the US, no consensus has been reached in the public discourse about its effects on citizen workers and economic growth. This column looks at a different perspective of this relationship. It explores the effect of skilled immigrants on the employment structures of US firms using employer-employee data. The results show the total skilled employment by the firm increases with increases in skilled immigrant employment. However, the employment expansion is greater for younger natives than for their older counterparts.

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