power in global markets. First, competition has declined around the world, measured as a moderate increase in average firm … markups during 2000- 2015. Second, the markup increase is driven by already high-markup firms (top decile of the markup … distribution) that charge increasing markups. Third, markups increased mostly among advanced economies but not in emerging markets …

markups over time. With minimal assumptions, we can disentangle aggregate markup and trade cost changes from observed changes … in trade flows. We apply our method to trade data between 1990 and 2015 for the world’s 100 largest economies. We find … that across all country pairs, on average, bilateral aggregate markups have increased by 2.8% per year. As bilateral trade …