Manufacturers and retailers in the global economy

In: The Canadian journal of economics: the journal of the Canadian Economics Association = Revue canadienne d'économique, Band 49, Heft 2, S. 685-706

Abstract

AbstractWe develop a model with multi‐product retailers acting as intermediaries between manufacturers and consumers. We show that the rise in retailer product assortment, the rise of up‐front payments in many retail markets and the observed shift in employment from manufacturing to retailing may be the consequence of the global integration of product markets. We also identify a novel benefit from market integration consisting of efficiency gains in the vertical distribution chain.