Advanced Search
MyIDEAS: Login to save this paper or follow this series

Import Competition and Market Power: Canadian Evidence

Contents:

Author Info

  • Thompson, Aileen
Registered author(s):

    Abstract

    This paper estimates price-marginal cost mark-ups for Canadian manufacturing industries in order to assess the impact of import competition on domestic market power. The results are mixed. Although the overall relationship between mark-ups and imports is positive across industries for the early 1970s and insignificant for the late 1970s, there is some weak cross-sectional evidence to suggest that imports reduce market power in domestically concentrated industries. Changes in imports between the two periods, however, have a positive impact on mark-ups in concentrated industries. Thus, there is no consistent evidence for Canada that imports have had the beneficial impact on competition that has been emphasized in much of the literature. In contrast, an interesting result of the paper is that increases in exports are associated with reductions in mark-ups, suggesting that exports may have a stronger pro-competitive impact on domestic firms than imports.

    Download Info

    If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
    File URL: http://www5.statcan.gc.ca/olc-cel/olc.action?ObjId=11F0019M2000139&ObjType=46&lang=en&limit=0
    Download Restriction: no

    Bibliographic Info

    Paper provided by Statistics Canada, Analytical Studies Branch in its series Analytical Studies Branch Research Paper Series with number 2000139e.

    as in new window
    Length:
    Date of creation: 04 May 2000
    Date of revision:
    Handle: RePEc:stc:stcp3e:2000139e

    Contact details of provider:
    Postal: Tunney's Pasture, Ottawa, Ontario, K1A 0T6
    Web page: http://www.statcan.gc.ca
    More information through EDIRC

    Related research

    Keywords: International trade; Merchandise imports;

    References

    References listed on IDEAS
    Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
    as in new window
    1. Schmalensee, Richard., 1987. "Inter-industry studies of structure and performance," Working papers, Massachusetts Institute of Technology (MIT), Sloan School of Management 1874-87., Massachusetts Institute of Technology (MIT), Sloan School of Management.
    2. Richard Harris, 1983. "Applied General Equilibrium Analysis of Small Open Economies with Scale Economies and Imperfect Competition," Working Papers, Queen's University, Department of Economics 524, Queen's University, Department of Economics.
    3. Levinsohn, J., 1991. "Testing the Imports-As-Market-Discipline Hypothesis," Working Papers, Research Seminar in International Economics, University of Michigan 272, Research Seminar in International Economics, University of Michigan.
    4. Robert E. Hall, 1986. "The Relation Between Price and Marginal Cost in U.S. Industry," NBER Working Papers 1785, National Bureau of Economic Research, Inc.
    5. Ian Domowitz & R. Glenn Hubbard & Bruce C. Petersen, 1986. "Market Structure and Cyclical Fluctuations in U.S. Manufacturing," NBER Working Papers 2115, National Bureau of Economic Research, Inc.
    6. Pugel, Thomas A, 1980. "Foreign Trade and US Market Performance," Journal of Industrial Economics, Wiley Blackwell, Wiley Blackwell, vol. 29(2), pages 119-29, December.
    7. Caves, Richard E., 1985. "International trade and industrial organization: Problems, solved and unsolved," European Economic Review, Elsevier, Elsevier, vol. 28(3), pages 377-395, August.
    8. Bresnahan, Timothy F., 1989. "Empirical studies of industries with market power," Handbook of Industrial Organization, Elsevier, in: R. Schmalensee & R. Willig (ed.), Handbook of Industrial Organization, edition 1, volume 2, chapter 17, pages 1011-1057 Elsevier.
    9. Baldwin,John R. & Gorecki,Paul With contributions by-Name:Caves,Richard E., 1995. "The Dynamics of Industrial Competition," Cambridge Books, Cambridge University Press, Cambridge University Press, number 9780521465618.
    10. Krishna, Pravin & Mitra, Devashish, 1998. "Trade liberalization, market discipline and productivity growth: new evidence from India," Journal of Development Economics, Elsevier, Elsevier, vol. 56(2), pages 447-462, August.
    11. Brown, D.K. & Stern, R.M., 1988. "Computable General Equilibrium Estimates Of The Gains From U.S.-Canadian Trade Liberalization," Working Papers, Research Seminar in International Economics, University of Michigan 220, Research Seminar in International Economics, University of Michigan.
    12. Roberts, Mark J., 1984. "Testing oligopolistic behavior," International Journal of Industrial Organization, Elsevier, Elsevier, vol. 2(4), pages 367-383, December.
    13. Markusen, James R., 1981. "Trade and the gains from trade with imperfect competition," Journal of International Economics, Elsevier, Elsevier, vol. 11(4), pages 531-551, November.
    14. Jacquemin, Alexis & de Ghellinck, Elisabeth & Huveneers, Christian, 1980. "Concentration and Profitability in a Small Open Economy," Journal of Industrial Economics, Wiley Blackwell, Wiley Blackwell, vol. 29(2), pages 131-44, December.
    15. Ian Domowitz & R. Glenn Hubbard & Bruce C. Petersen, 1986. "Business Cycles and the Relationship Between Concentration and Price-Cost Margins," RAND Journal of Economics, The RAND Corporation, vol. 17(1), pages 1-17, Spring.
    16. de Melo, Jaime & Urata, Shujiro, 1986. "The influence of increased foreign competition on industrial concentration and profitability," International Journal of Industrial Organization, Elsevier, Elsevier, vol. 4(3), pages 287-304, September.
    17. Katics, Michelle M & Petersen, Bruce C, 1994. "The Effect of Rising Import Competition on Market Power: A Panel Data Study of U.S. Manufacturing," Journal of Industrial Economics, Wiley Blackwell, Wiley Blackwell, vol. 42(3), pages 277-86, September.
    18. Harrison, Ann E., 1994. "Productivity, imperfect competition and trade reform : Theory and evidence," Journal of International Economics, Elsevier, Elsevier, vol. 36(1-2), pages 53-73, February.
    Full references (including those not matched with items on IDEAS)

    Citations

    Lists

    This item is not listed on Wikipedia, on a reading list or among the top items on IDEAS.

    Statistics

    Access and download statistics

    Corrections

    When requesting a correction, please mention this item's handle: RePEc:stc:stcp3e:2000139e. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Mark Brown).

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If references are entirely missing, you can add them using this form.

    If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.