CREAT: Census Research Exploration and Analysis Tool

U.S. Market Concentration and Import Competition

August 2022

Working Paper Number:

CES-22-34

Abstract

Many studies have documented that market concentration has risen among U.S. firms in recent decades. In this paper, we show that this rise in concentration was accompanied by tougher product market competition due to the entry of foreign competitors. Using confidential census data covering the universe of all firm sales in the U.S. manufacturing sector, we find that rising import competition increased concentration among U.S. firms by reallocating sales from smaller to larger U.S. firms and by causing firm exit. However, this increase in concentration was counteracted by the expansion of foreign firms, which reduced domestic firms' share of the U.S. market inclusive of foreign firms' sales. We find that once the sales of foreign exporters are taken into account, U.S. marketconcentration in manufacturing was stable between 1992 and 2012.

Document Tags and Keywords

Keywords Keywords are automatically generated using KeyBERT, a powerful and innovative keyword extraction tool that utilizes BERT embeddings to ensure high-quality and contextually relevant keywords.

By analyzing the content of working papers, KeyBERT identifies terms and phrases that capture the essence of the text, highlighting the most significant topics and trends. This approach not only enhances searchability but provides connections that go beyond potentially domain-specific author-defined keywords.
:
market, endogeneity, manufacturing, sale, import, export, monopolistic, tariff, shipment, exporting, exporter, oligopolistic, foreign, revenue, competitor, industry concentration, globalization, trading, importer, firms import, export market

Tags Tags are automatically generated using a pretrained language model from spaCy, which excels at several tasks, including entity tagging.

The model is able to label words and phrases by part-of-speech, including "organizations." By filtering for frequent words and phrases labeled as "organizations", papers are identified to contain references to specific institutions, datasets, and other organizations.
:
Ordinary Least Squares, Federal Reserve Bank, Federal Reserve System, North American Industry Classification System, Harmonized System, Herfindahl Hirschman Index, Census Bureau Disclosure Review Board, Longitudinal Firm Trade Transactions Database, Disclosure Review Board, Michigan Institute for Data Science

Similar Working Papers Similarity between working papers are determined by an unsupervised neural network model know as Doc2Vec.

Doc2Vec is a model that represents entire documents as fixed-length vectors, allowing for the capture of semantic meaning in a way that relates to the context of words within the document. The model learns to associate a unique vector with each document while simultaneously learning word vectors, enabling tasks such as document classification, clustering, and similarity detection by preserving the order and structure of words. The document vectors are compared using cosine similarity/distance to determine the most similar working papers. Papers identified with 🔥 are in the top 20% of similarity.

The 10 most similar working papers to the working paper 'U.S. Market Concentration and Import Competition' are listed below in order of similarity.