This chapter first discusses the increasing importance of retailers in international trade and then reviews the literature on two main points. The first point is that trade liberalization may induce manufacturers and retailers to adopt vertical contractual arrangements that soften price competition. As a result, the impact of trade liberalization on the volume of trade and social welfare may be smaller or even negative compared to the case where these contractual arrangements are held constant. The second point is that trade liberalization may affect the structure of the retail industry and may therefore contribute to explaining observed changes in retailing, including the increase in market concentration, changes in the size distribution of retail firms, the rise in retailers’ assortments, and even the use of upfront payments by manufacturers, such as slotting allowances, to gain access to retail shelves. We conclude by discussing some directions for future research.
You are not authenticated to view the full text of this chapter or article.
Elgaronline requires a subscription or purchase to access the full text of books or journals. Please login through your library system or with your personal username and password on the homepage.
Non-subscribers can freely search the site, view abstracts/ extracts and download selected front matter and introductory chapters for personal use.
Your library may not have purchased all subject areas. If you are authenticated and think you should have access to this title, please contact your librarian.