Globalization and U.S. Industry Concentration

47 Pages Posted: 10 Dec 2018 Last revised: 17 Dec 2018

See all articles by Thomas P. Griffin

Thomas P. Griffin

Villanova University - Department of Finance

Date Written: December 17, 2018


I show that a tariff policy change that increased trade with China led to a decline in U.S. public listing rates and elevated industry concentration. Consistent with heterogeneous firm models of trade, the shock impeded the entry and performance of small manufacturers but did not adversely impact large multinationals. Stock price reactions to the policy change and threat of reversal by President Trump imply that trade liberalization increases the value of large firms and destroys the value of small firms. These findings suggest that globalization contributed to recent trends in the U.S. equity market by disproportionately harming small firms.

Keywords: Globalization, Industry Concentration, IPOs, Stock market listing

JEL Classification: F65, G10, G30, G38

Suggested Citation

Griffin, Thomas, Globalization and U.S. Industry Concentration (December 17, 2018). Available at SSRN: or

Thomas Griffin (Contact Author)

Villanova University - Department of Finance ( email )

United States


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