1 Director of Research at the French National Research Center (CNRS)-Université Clermont Auvergne, CNRS, IRD, CERDI, F-63000, Clermont-Ferrand, France · 2 Lead Economist at the World Bank Development Research Group · 3 Institute for the World Economy (IfW) and Phd in economics from Kiel University, Germany · 4 Economist at the International Monetary Fund (IMF) · 5 Economist at the World Bank Development Research Group and Affiliate of the Bureau for Research and Economic Analysis of Development(BREAD)
open access
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.