02266cas a2200265 a 4500 AALejournalIMF018555 230101c9999 xx r poo 0 0eng d 5.00 USD 9781484361672 1018-5941 BD-DhAAL BD-DhAAL Diez, Federico. Global Market Power and its Macroeconomic Implications / Federico Diez, Daniel Leigh, Suchanan Tambunlertchai. Washington, D.C. : International Monetary Fund, 2018. 1 online resource (42 pages) IMF Working Papers <strong>Off-Campus Access:</strong> No User ID or Password Required <strong>On-Campus Access:</strong> No User ID or Password Required Electronic access restricted to authorized BRAC University faculty, staff and students We estimate the evolution of markups of publicly traded firms in 74 economies from 1980-2016. In advanced economies, markups have increased by an average of 39 percent since 1980. The increase is broad-based across industries and countries, and driven by the highest markup firms in each economic sector. For emerging markets and developing economies, there is less evidence of a rise in markups. We find a positive relation between firm markups and other indicators of market power, such as profits or industry concentration. Focusing on advanced economies, we investigate the relation between markups and investment, innovation, and the labor share at the firm level. We find evidence of a non-monotonic relation, with higher markups being correlated initially with increasing and then with decreasing investment and innovation rates. This non-monotonicity is more pronounced for firms that are closer to the technological frontier. More concentrated industries also feature a more negative relation between markups and investment and innovation. The association between markups and the labor share is generally negative. Mode of access: Internet Leigh, Daniel. Tambunlertchai, Suchanan. IMF Working Papers; Working Paper ; No. 2018/137 Full text available on IMF http://elibrary.imf.org/view/journals/001/2018/137/001.2018.issue-137-en.xml IMF e-Library