Foreign trade elasticities and import discipline
AbstractThis paper provides new evidence on the 'trade-as-discipline7rsquo; hypothesis by considering the determination of price - cost margins with a panel of 41 four-digit US food manufacturing industries from 1972 to 1987. Following the empirical specification suggested by competitive fringe oligopoly models, we include estimated domestic demand elasticities and cross-price elasticities of import demand as explanatory variables, and the empirical results confirm the importance of these variables in assessing the hypothesis.
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Bibliographic InfoArticle provided by Taylor & Francis Journals in its journal Applied Economics.
Volume (Year): 30 (1998)
Issue (Month): 1 ()
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- Lopez, Rigoberto A. & Lopez, Elena, 2001.
"The Impact of Imports on Price-Cost Margins: An Empirical Illustration,"
25153, University of Connecticut, Food Marketing Policy Center.
- Rigoberto A. Lopez & Elena Lopez, 2003. "The impact of imports on price-cost margins: An empirical illustration," Empirical Economics, Springer, vol. 28(2), pages 403-416, 04.
- Rigoberto A. Lopez & Elena Lopez, 2001. "The Impact of Imports on Price-Cost Margins: An Empirical Illustration," Food Marketing Policy Center Research Reports 061, University of Connecticut, Department of Agricultural and Resource Economics, Charles J. Zwick Center for Food and Resource Policy.
- Olive, Michael, 2004. "Pricing behaviour in Japanese manufacturing: a comparative study," Japan and the World Economy, Elsevier, vol. 16(4), pages 417-429, December.
- Zimmerman, Paul R. & Carlson, Julie A., 2012. "Critical import supply elasticities and the ‘imports-as-market-discipline’ hypothesis," Journal of Economic Behavior & Organization, Elsevier, vol. 84(1), pages 345-354.
- Zimmerman, Paul R. & Carlson, Julie A., 2010. "Critical import supply elasticities and the ‘imports-as-market-discipline’ hypothesis," MPRA Paper 27848, University Library of Munich, Germany.
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