Global Markup Estimates for the Primary Foods Industry
Description
Estimates of the markup for the Primary Foods industry (comprised of agriculture, hunting, fishing, and logging) using the De Loecker et al. (2020) methodology. Instead of using micro-based, firm-level data, we calculate the markups using aggregate, macro-data. The database contains information on 170 countries for the years 1995 - 2015. Our sources of data are two-fold; the first is the EORA input-output database, and the second is the UN FAO-Stat database. Our paper Rodriguez del Valle and Fernández-Vázquez (2024), explains in more detail the estimation technique based on Generalized Maximum Entropy employed to derive these estimates. The dataset can be used to explore and research a myriad of topics, including the impact globalization has on markups, the role of institutional quality, and even climate. We have found strong evidence that the percentage share of value added required for production originating from abroad is significantly connected to lower markups. We have also found compelling empirical evidence that institutional quality can impact the evolution of markups. Please note that we make a strong assumption that each industry is produced by one "firm" consistent with input-output theory. For this industry, we believe the assumption will not bias results too strongly, particularly when analyzing developing countries. Results may be biased in countries where large farms exist. Version 2 includes two new variables: rts, the returns to scale and the profit rate.