IDEAS home Printed from https://ideas.repec.org/p/wbk/wbrwps/10339.html
   My bibliography  Save this paper

Natural Resource Dependence and Monopolized Imports

Author

Listed:
  • Arezki,Rabah
  • Fernandes,Ana Margarida
  • Merchán,Federico
  • Nguyen,Ha
  • Reed,Tristan

Abstract

Countries with greater commodity export intensity have more concentrated markets for imported goods. Import market concentration is associated with higher domestic prices, suggesting that markups due to greater concentration outweigh any potential cost efficiency. Tariffs, non-tariff measures, and tariff evasion are mechanisms that concentrate import markets. These results suggest a novel channel for the resource curse stemming from the monopolization of imports.

Suggested Citation

  • Arezki,Rabah & Fernandes,Ana Margarida & Merchán,Federico & Nguyen,Ha & Reed,Tristan, 2023. "Natural Resource Dependence and Monopolized Imports," Policy Research Working Paper Series 10339, The World Bank.
    • Handle: RePEc:wbk:wbrwps:10339
    as

    Download full text from publisher

    File URL: http://documents.worldbank.org/curated/en/099736303022315150/pdf/IDU17511c9351456314ed21a7a516b67b716cb7a.pdf
    Download Restriction: no
    ---><---

    Other versions of this item:

    References listed on IDEAS

    as
    1. C. Lanier Benkard & Ali Yurukoglu & Anthony Lee Zhang, 2021. "Concentration in Product Markets," NBER Working Papers 28745, National Bureau of Economic Research, Inc.
      • Benkard, C. Lanier & Yurukoglu, Ali & Zhang, Anthony Lee, 2021. "Concentration in Product Markets," Working Papers 308, The University of Chicago Booth School of Business, George J. Stigler Center for the Study of the Economy and the State.
    2. David Rezza Baqaee & Emmanuel Farhi, 2020. "Productivity and Misallocation in General Equilibrium," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 135(1), pages 105-163.
    3. Torvik, Ragnar, 2001. "Learning by doing and the Dutch disease," European Economic Review, Elsevier, vol. 45(2), pages 285-306, February.
    4. Jeffrey Frankel, 2012. "The Natural Resource Curse: A Survey of Diagnoses and Some Prescriptions," Growth Lab Working Papers 36, Harvard's Growth Lab.
    5. Zhaohui Niu & Chris Milner & Saileshsingh Gunessee & Chang Liu, 2020. "Are nontariff measures and tariffs substitutes? Some panel data evidence," Review of International Economics, Wiley Blackwell, vol. 28(2), pages 408-428, May.
    6. Anthony J. Venables, 2016. "Using Natural Resources for Development: Why Has It Proven So Difficult?," Journal of Economic Perspectives, American Economic Association, vol. 30(1), pages 161-184, Winter.
    7. Volker Nocke & Michael D. Whinston, 2022. "Concentration Thresholds for Horizontal Mergers," American Economic Review, American Economic Association, vol. 112(6), pages 1915-1948, June.
    8. Ralph Ossa, 2014. "Trade Wars and Trade Talks with Data," American Economic Review, American Economic Association, vol. 104(12), pages 4104-4146, December.
    9. Giovanni Maggi & Pinelopi Koujianou Goldberg, 1999. "Protection for Sale: An Empirical Investigation," American Economic Review, American Economic Association, vol. 89(5), pages 1135-1155, December.
    10. Bown, Chad P. & Tovar, Patricia, 2011. "Trade liberalization, antidumping, and safeguards: Evidence from India's tariff reform," Journal of Development Economics, Elsevier, vol. 96(1), pages 115-125, September.
    11. Pritchett, Lant & Sethi, Geeta, 1994. "Tariff Rates, Tariff Revenue, and Tariff Reform: Some New Facts," The World Bank Economic Review, World Bank, vol. 8(1), pages 1-16, January.
    12. Gaubert, Cecile & Itskhoki, Oleg & Vogler, Maximilian, 2021. "Government policies in a granular global economy," Journal of Monetary Economics, Elsevier, vol. 121(C), pages 95-112.
    13. Frederick van der Ploeg, 2011. "Natural Resources: Curse or Blessing?," Journal of Economic Literature, American Economic Association, vol. 49(2), pages 366-420, June.
    14. Krueger, Anne O, 1974. "The Political Economy of the Rent-Seeking Society," American Economic Review, American Economic Association, vol. 64(3), pages 291-303, June.
    15. Dean Yang, 2008. "Can Enforcement Backfire? Crime Displacement in the Context of Customs Reform in the Philippines," The Review of Economics and Statistics, MIT Press, vol. 90(1), pages 1-14, February.
    16. Fernandes, Ana M. & Freund, Caroline & Pierola, Martha Denisse, 2016. "Exporter behavior, country size and stage of development: Evidence from the exporter dynamics database," Journal of Development Economics, Elsevier, vol. 119(C), pages 121-137.
    17. Peter Davis & Eliana Garcés, 2009. "Quantitative Techniques for Competition and Antitrust Analysis," Economics Books, Princeton University Press, edition 1, number 9078.
    18. Philippe Aghion & Nick Bloom & Richard Blundell & Rachel Griffith & Peter Howitt, 2005. "Competition and Innovation: an Inverted-U Relationship," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 120(2), pages 701-728.
    19. Jan De Loecker & Jan Eeckhout & Gabriel Unger, 2020. "The Rise of Market Power and the Macroeconomic Implications [“Econometric Tools for Analyzing Market Outcomes”]," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 135(2), pages 561-644.
    20. Nathan Nunn & Daniel Trefler, 2010. "The Structure of Tariffs and Long-Term Growth," American Economic Journal: Macroeconomics, American Economic Association, vol. 2(4), pages 158-194, October.
    21. Raymond Fisman & Shang-Jin Wei, 2004. "Tax Rates and Tax Evasion: Evidence from "Missing Imports" in China," Journal of Political Economy, University of Chicago Press, vol. 112(2), pages 471-500, April.
    22. Macchiavello, Rocco & Leone, Fabrizio & Reed, Tristan, 2021. "The Falling Price of Cement in Africa," CEPR Discussion Papers 16253, C.E.P.R. Discussion Papers.
    23. Jonathan Isham & Michael Woolcock & Lant Pritchett & Gwen Busby, 2005. "The Varieties of Resource Experience: Natural Resource Export Structures and the Political Economy of Economic Growth," The World Bank Economic Review, World Bank, vol. 19(2), pages 141-174.
    24. Caroline Freund & Sarah Oliver, 2016. "Rich People Poor Countries: The Rise of Emerging-Market Tycoons and their Mega Firms," Peterson Institute Press: All Books, Peterson Institute for International Economics, number 7038, April.
    25. World Bank, 2011. "The Changing Wealth of Nations : Measuring Sustainable Development in the New Millennium," World Bank Publications - Books, The World Bank Group, number 2252.
    26. Bertrand Gruss & Suhaib Kebhaj, 2019. "Commodity Terms of Trade: A New Database," IMF Working Papers 2019/021, International Monetary Fund.
    27. Joel Rodrigue & Yong Tan, 2019. "Price, Product Quality, And Exporter Dynamics: Evidence From China," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 60(4), pages 1911-1955, November.
    28. Javorcik, Beata S. & Narciso, Gaia, 2017. "WTO accession and tariff evasion," Journal of Development Economics, Elsevier, vol. 125(C), pages 59-71.
    29. Sandra Sequeira, 2016. "Corruption, Trade Costs, and Gains from Tariff Liberalization: Evidence from Southern Africa," American Economic Review, American Economic Association, vol. 106(10), pages 3029-3063, October.
    30. Andrew B. Bernard & Esther Ann Boler & Renzo Massari & Jose-Daniel Reyes & Daria Taglioni, 2017. "Exporter Dynamics and Partial-Year Effects," American Economic Review, American Economic Association, vol. 107(10), pages 3211-3228, October.
    31. Emily Blanchard & Xenia Matschke, 2015. "U.S. Multinationals and Preferential Market Access," The Review of Economics and Statistics, MIT Press, vol. 97(4), pages 839-854, October.
    32. Ackerman, Karen Z. & Dixit, Praveen M., 1999. "An Introduction To State Trading In Agriculture," Agricultural Economic Reports 33909, United States Department of Agriculture, Economic Research Service.
    33. Kaufmann, Daniel & Kraay, Aart & Mastruzzi, Massimo, 2010. "The worldwide governance indicators : methodology and analytical issues," Policy Research Working Paper Series 5430, The World Bank.
    34. Philip R. Lane & Aaron Tornell, 1999. "The Voracity Effect," American Economic Review, American Economic Association, vol. 89(1), pages 22-46, March.
    35. World Bank, 2020. "Doing Business 2020," World Bank Publications - Books, The World Bank Group, number 32436.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Alssadek, Marwan & Benhin, James, 2023. "Natural resource curse: A literature survey and comparative assessment of regional groupings of oil-rich countries," Resources Policy, Elsevier, vol. 84(C).
    2. Kaznacheev, Peter, 2013. "Resource Rents and Economic Growth: Economic and institutional development in countries with a high share of income from the sale of natural resources. Analysis and recommendations based on internatio," EconStor Research Reports 121950, ZBW - Leibniz Information Centre for Economics.
    3. Mehrdad Vahabi, 2017. "A critical survey of the resource curse literature through the appropriability lens," CEPN Working Papers 2017-14, Centre d'Economie de l'Université de Paris Nord.
    4. Francesco Caselli & Guy Michaels, 2013. "Do Oil Windfalls Improve Living Standards? Evidence from Brazil," American Economic Journal: Applied Economics, American Economic Association, vol. 5(1), pages 208-238, January.
    5. Waqar Wadho & Sadia Hussain, 2023. "Ethnic diversity, concentration of political power and the curse of natural resources," Economia Politica: Journal of Analytical and Institutional Economics, Springer;Fondazione Edison, vol. 40(1), pages 113-137, April.
    6. Mamo, Nemera & Bhattacharyya, Sambit & Moradi, Alexander, 2019. "Intensive and extensive margins of mining and development: Evidence from Sub-Saharan Africa," Journal of Development Economics, Elsevier, vol. 139(C), pages 28-49.
    7. Jeffrey Frankel, 2012. "The Natural Resource Curse: A Survey of Diagnoses and Some Prescriptions," Growth Lab Working Papers 36, Harvard's Growth Lab.
    8. Tania Masi & Antonio Savoia & Kunal Sen, 2020. "Is there a fiscal resource curse? Resource rents, fiscal capacity, and political institutions in developing economies," WIDER Working Paper Series wp2020-10, World Institute for Development Economic Research (UNU-WIDER).
    9. Pierre JACQUET & Alexis ATLANI & Marwan LISSER, 2017. "Policy responses to terms of trade shocks," Working Papers P205, FERDI.
    10. Janus, Thorsten, 2024. "Does export underreporting contribute to the resource curse?," World Development, Elsevier, vol. 181(C).
    11. Masuch, Klaus & Anderton, Robert & Setzer, Ralph & Benalal, Nicholai, 2018. "Structural policies in the euro area," Occasional Paper Series 210, European Central Bank.
    12. Tahar, Moez Ben & Slimane, Sarra Ben & Ali Houfi, Mohamed, 2021. "Commodity prices and economic growth in commodity-dependent countries: New evidence from nonlinear and asymmetric analysis," Resources Policy, Elsevier, vol. 72(C).
    13. Anthony J. Venables, 2016. "Using Natural Resources for Development: Why Has It Proven So Difficult?," Journal of Economic Perspectives, American Economic Association, vol. 30(1), pages 161-184, Winter.
    14. Ruba Aljarallah, 2021. "An Analysis of the Impact of Rents from Non-renewable Natural Resources and Changes in Human Capital on Institutional Quality: A Case Study of Kuwait," International Journal of Energy Economics and Policy, Econjournals, vol. 11(5), pages 224-234.
    15. Masi, Tania & Savoia, Antonio & Sen, Kunal, 2024. "Is there a fiscal resource curse? Resource rents, fiscal capacity and political institutions in developing economies," World Development, Elsevier, vol. 177(C).
    16. Beverelli, Cosimo & Ticku, Rohit, 2022. "Reducing tariff evasion: The role of trade facilitation," Journal of Comparative Economics, Elsevier, vol. 50(2), pages 534-554.
    17. Harouna Kinda, 2021. "Does transparency pay ? The impact of EITI on tax revenues in resource-rich developing countries," Working Papers hal-03208955, HAL.
    18. Okada, Keisuke & Shinkuma, Takayoshi, 2022. "Transparency and natural resources in sub-Saharan Africa," Resources Policy, Elsevier, vol. 76(C).
    19. James, Alexander, 2019. "Fata morganas in oil-rich, institution-poor economies," Resources Policy, Elsevier, vol. 60(C), pages 234-242.
    20. Jaime DE MELO & Marcelo OLARREAGA, 2017. "Trade Related Institutions and Development," Working Papers P199, FERDI.

    More about this item

    JEL classification:

    • D20 - Microeconomics - - Production and Organizations - - - General
    • F10 - International Economics - - Trade - - - General
    • L10 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - General
    • O10 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - General
    • Q00 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - General - - - General

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:wbk:wbrwps:10339. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Roula I. Yazigi (email available below). General contact details of provider: https://edirc.repec.org/data/dvewbus.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.