Import Competition, Product Differentiation and Mark-Ups - Microeconomic evidence from Swedish manufacturing in the 1990s
AbstractThis paper examines how import competition from different origins and the presence of product differentiation affect market power of Swedish manufacturing firms during the 1990s. Applying Roeger’s method (1995), I perform the empirical analysis based on detailed firm-level data and estimate an average mark-up level of Swedish manufacturing firms. The general finding is that imports from both European countries and other highincome countries outside Europe impose disciplinary effects on price-cost margin of Swedish manufacturing firms. The strongest effect is from the recent EU member countries. However, the competitive pressure associated with import is relaxed in the presence of product differentiation.
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Bibliographic InfoPaper provided by Trade Union Institute for Economic Research in its series Working Paper Series with number 195.
Length: 33 pages
Date of creation: 07 Oct 2004
Date of revision:
Import competition; Mark-up; Market structure; Product differentiation;
Find related papers by JEL classification:
- F12 - International Economics - - Trade - - - Models of Trade with Imperfect Competition and Scale Economies; Fragmentation
- F15 - International Economics - - Trade - - - Economic Integration
- L13 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Oligopoly and Other Imperfect Markets
- L60 - Industrial Organization - - Industry Studies: Manufacturing - - - General
This paper has been announced in the following NEP Reports:
- NEP-ALL-2004-10-21 (All new papers)
- NEP-BEC-2004-10-21 (Business Economics)
- NEP-COM-2005-01-05 (Industrial Competition)
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