Although the food sector remains highly protected, the expansion of trade agreements has increased competition, affecting firms’ export behavior and their market power in output and input markets. These effects depend on demand-side conditions in the foreign markets where firms operate. Understanding these interactions is crucial for policymakers designing trade policies and for firms shaping profitability strategies. This project examines: (i) the role of demand-side conditions in shaping output market power; and (ii) the joint effect of export activity and demand conditions on labor market power. Using firm-level and customs data for the French agri-food processing industry, the project applies econometric methods to identify these effects and incorporates demand-side factors such as technological change, consumer preference, and institutional quality of the destination countries.
