The Effect of Rising Import Competition on Market Power: A Panel Data Study of U.S. Manufacturing
The rapid rise in import competition in recent years provides an unusual test for examining the market structure-performance relationship with panel data. A weakness of the cross-sectional approach is that many important variables are difficult to measure. However, if these variables are determined by slowly evolving technological conditions and if there is time-series variation in an observable variable such as import shares, then the use of a within-industry estimator may control for some of the problems confronting cross-section studies. The authors' estimates indicate a sizable effect of import competition on price-cost margins for the time period 1976-86. Copyright 1994 by Blackwell Publishing Ltd.
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Volume (Year): 42 (1994)
Issue (Month): 3 (September)
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