The Impact of Imports on Price-Cost Margins: An Empirical Illustration
AbstractThis article decomposes the impact of imports on domestic price-cost margins into separate price and cost effects. Using data from 24 food-processing industries, the empirical results show that although the direct impact of imports on prices is always negative, a positive net impact on price-cost margins occurs in industries characterized by low own-price elasticity of demand and diseconomies of scale. Further results show that the disciplining effect of imports is more preponderant the lower the degree of domestic competition.
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Bibliographic InfoPaper provided by University of Connecticut, Food Marketing Policy Center in its series Research Reports with number 25153.
Date of creation: 2001
Date of revision:
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Market power; imports; market structure; international trade; food industry; Agribusiness; Demand and Price Analysis; International Relations/Trade;
Other versions of this item:
- 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.
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