Price-Cost Margins, Exports and Productivity Growth: With an Application to Canadian Industries
AbstractA model is estimated for oligopolistic industries producing multiple outputs in short-run equilibrium. Outputs are sold domestically and exported, while capital is treated as a quasi-fixed factor. The model is applied to the Canadian nonelectrical machinery, electrical products and chemical products industries. The results show that there is significant oligopoly power in each of the industries, and that the degree of this power differs between the domestic and export markets. Total factor productivity is decomposed. Price-cost margins exert little influence but the rate of technological change, returns to scale and the rate of capital adjustment determine productivity growth.
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Bibliographic InfoPaper provided by National Bureau of Economic Research, Inc in its series NBER Working Papers with number 3584.
Date of creation: Jan 1991
Date of revision:
Publication status: published as The Canadian Journal of Economics, Vol. 24 No. 3, pp. 638-659, (August 1991).
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- Jeffrey I. Bernstein & Pierre Mohnen, 1991. "Price-Cost Margins, Exports and Productivity Growth: With an Application to Canadian Industries," Canadian Journal of Economics, Canadian Economics Association, vol. 24(3), pages 638-59, August.
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