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Profitability and product differentiation in Greek food industries

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  • K. Oustapassidis
  • A. Vlachvei

Abstract

This paper explains the increasing difference between the profit margins of differentiated and undifferentiated Greek food manufacturing industries between 1988 and 1994, using panel data. The 2SLS results for the fixed effects model show important differences across the high, medium and low differentiated industry groups. The increasing difference between the margins of the highly differentiated group - which includes the most profitable industries - and the other groups can be mainly attributed to the greater sensitivity of margins in differentiated industries to advertising and demand changes.

Suggested Citation

  • K. Oustapassidis & A. Vlachvei, 1999. "Profitability and product differentiation in Greek food industries," Applied Economics, Taylor & Francis Journals, vol. 31(10), pages 1293-1298.
  • Handle: RePEc:taf:applec:v:31:y:1999:i:10:p:1293-1298
    DOI: 10.1080/000368499323508
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    Cited by:

    1. Yu-Ter Wang, 2006. "Product differentiation and the export subsidy dispute," Applied Economics Letters, Taylor & Francis Journals, vol. 13(14), pages 943-945.
    2. Nina Ponikvar & Maks Tajnikar, 2011. "Are the Determinants of Markup Size Industry-Specific? The Case of Slovenian Manufacturing Firms," Panoeconomicus, Savez ekonomista Vojvodine, Novi Sad, Serbia, vol. 58(2), pages 229-244, June.
    3. Ghazalian, Pascal L., 2015. "Processed Food Trade of Greece with EU and Non-EU Countries: An Empirical Analysis," MPRA Paper 67084, University Library of Munich, Germany.
    4. Ourania Notta & Kostas Oustapassidis, 2001. "Profitability and Media Advertising in Greek Food Manufacturing Industries," Review of Industrial Organization, Springer;The Industrial Organization Society, vol. 18(1), pages 115-126, February.

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