The rise of corporate market power and its macroeconomic implications

Dear colleagues,
You are kindly invited to the next Joint Firm Analysis Seminar of the NBB, KUL, UA, UCL, UGhent, UHasselt, ULB, ULg and UMons on 

IMF World Economic Outlook – Chapter 2
The rise of corporate market power and its macroeconomic implications

by Romain Duval (IMF)

on Tuesday, April 9 at 16.30
Auditorium of the National Bank of Belgium


Abstract :

This chapter investigates whether corporate market power has increased and, if so, its macroeconomic implications.

The three main takeaways from broad analysis of cross-country firm-level patterns are that
(1) market power has increased moderately across advanced economies, as indicated by firms’ price markups over marginal costs rising by close to 8 percent since 2000, but not in emerging market economies;
(2) the increase has been fairly widespread across advanced economies and industries, but within them it has been concentrated among a small fraction of dynamic—more productive and innovative—firms; and
(3) although the overall macroeconomic implications have been modest so far, further increases in the market power of these already powerful firms could weaken investment, deter innovation, reduce labor income shares, and make it more difficult for monetary policy to stabilize output.

Even as rising corporate market power seems so far more reflective of “winner-takes-most” by more productive and innovative firms than of weaker pro-competition policies, its challenging macroeconomic implications call for reforms that keep future market competition strong.


The seminar will take place on Tuesday, April 9 from 16.30 until 18.00 in the Auditorium of the National Bank of Belgium.

Entrance: Warmoesberg 61, 1000 Brussels.

Please include name and car plate number for access the NBB Parking Warmoesberg 41. Due to security measures, we emphasize the need for you to register by email to before Monday 5 at 4:00 pm if you plan to attend the seminar. Without registration, you will not be allowed in the seminar room. You will receive a nominative badge at the entrance. We recommend that you arrive at least 10 minutes before the start of the seminar.


Kind regards,

Emmanuel Dhyne (NBB-UMons), Catherine Fuss (NBB), Johannes Van Biesebroeck (KU Leuven), Joep Konings (KU Leuven), Hylke Vandenbussche (KUL), Vincent Vandenberghe (UCL), Gonzague Vannoorenberghe (UCL), Bart Cockx (UGent), Glenn Rayp(UGent), Paola Conconi (ULB), Ilan Tojerow (ULB), Mathieu Parenti (ULB), Alain Finet (UMons), Jan Bouckaert (UA), Mark Vancauteren (UHasselt) and Axel Gautier (ULg)