Effects of the customs union with the European Union on the market structure and pricing behaviour of the Turkish manufacturing industry
Turkey established a Customs Union with the European Union in 1996. This study aims to analyse the effect of that Customs Union on the market structure and the pricing behaviour of the Turkish manufacturing industry for the period 1994 to 2000. To that end, the price cost mark-up equation of 12 manufacturing industry sectors is estimated using the import and export ratios with European Union countries together with control variables. A second equation is also estimated for the concentration ratio index, taking the trade ratios with European Union countries as explanatory variables. The estimation method is panel data covering eight years and 12 cross-section units. Estimation outcomes indicate that the export and import ratios of trade with European Union countries have a negative relation with the price cost mark-up in the manufacturing sector. It is concluded that increased imports with union countries have created a positive wealth and efficiency effect upon the Turkish manufacturing industry, due to falling price cost mark-ups. Similarly, the concentration ratio equation estimation outcomes indicate that increased imports with union countries have induced a decline in the concentration ratio for the manufacturing industry during the period in question.
Volume (Year): 38 (2006)
Issue (Month): 20 ()
|Contact details of provider:|| Web page: http://www.tandfonline.com/RAEC20|
|Order Information:||Web: http://www.tandfonline.com/pricing/journal/RAEC20|
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.:
- Urata, Shujiro, 1984. "Price-cost margins and imports in an oligopolistic market," Economics Letters, Elsevier, vol. 15(1-2), pages 139-144.
- Pravin Krishna & Devashish Mitra, .
"Trade Liberalization, Market Discipline and Productivity Growth: New Evidence From India,"
96-8, Brown University, Department of Economics.
- Krishna, Pravin & Mitra, Devashish, 1998. "Trade liberalization, market discipline and productivity growth: new evidence from India," Journal of Development Economics, Elsevier, vol. 56(2), pages 447-462, August.
- J. Mercenier & Erin Yeldan, 1996.
"On Turkey's Trade Policy : Is A Customs Union with Europe Enough?,"
9604, Department of Economics, Bilkent University.
- Mercenier, Jean & Yeldan, Erinc, 1997. "On Turkey's trade policy: Is a customs union with Europe enough?," European Economic Review, Elsevier, vol. 41(3-5), pages 871-880, April.
- Cowling, Keith & Waterson, Michael, 1976. "Price-Cost Margins and Market Structure," Economica, London School of Economics and Political Science, vol. 43(171), pages 267-74, August.
- Hartler, Christina & Laird, Sam, 1999. "The EU model and Turkey: A case for thanksgiving?," WTO Staff Working Papers TPRD-99-01, World Trade Organization (WTO), Economic Research and Statistics Division.
- de Melo, Jaime & Urata, Shujiro, 1986. "The influence of increased foreign competition on industrial concentration and profitability," International Journal of Industrial Organization, Elsevier, vol. 4(3), pages 287-304, September.
- Bilin Neyaptı & Fatma Taskın & Murat Ungor, 2007.
"Has European Customs Union Agreement really affected Turkey's trade?,"
Taylor & Francis Journals, vol. 39(16), pages 2121-2132.
- NEYAPTI Bilin & TASKIN Fatma & UNGOR Murat, . "Has European Customs Union Agreement Really Affected Turkey's Trade?," EcoMod2003 330700112, EcoMod.
- Bilin Neyapti & Fatma Taskin & Murat Ungor, 2004. "Has European Customs Union Agrement Really Affected Turkey's Trade?," Working Papers 0404, Department of Economics, Bilkent University.
- Ebru VOYVODA & Erinç YELDAN & Kıvılcım Metin ÖZCAN, 2000. "1980 Sonrası Türk İmalat Sanayinin Gelişme Dinamikleri Üzerine Gözlemler," Iktisat Isletme ve Finans, Bilgesel Yayincilik, vol. 15(176), pages 22-37.
- Uma Kambhampati & Ashok Parikh, 2003. "Disciplining firms: the impact of trade reforms on profit margins in Indian industry," Applied Economics, Taylor & Francis Journals, vol. 35(4), pages 461-470.
- Togan, Sübidey, 1997. "Opening up the Turkish Economy in the Context of the Customs Union with EU," Journal of Economic Integration, Center for Economic Integration, Sejong University, vol. 12, pages 157-179.
- Peter Lukacs, 2000. "A decomposition of price-cost margins in UK manufacturing," Applied Economics Letters, Taylor & Francis Journals, vol. 7(10), pages 681-686.
- Bottasso, Anna & Sembenelli, Alessandro, 2001. "Market power, productivity and the EU Single Market Program: Evidence from a panel of Italian firms," European Economic Review, Elsevier, vol. 45(1), pages 167-186, January.
- Gerard Go & David Kamerschen & Charles Delorme, 1999. "Market structure and price-cost margins in Philippine manufacturing industries," Applied Economics, Taylor & Francis Journals, vol. 31(7), pages 857-864.
- Helpman, Elhanan, 1981. "International trade in the presence of product differentiation, economies of scale and monopolistic competition : A Chamberlin-Heckscher-Ohlin approach," Journal of International Economics, Elsevier, vol. 11(3), pages 305-340, August.
- 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, vol. 42(3), pages 277-86, September.
- Baldwin, Richard E. & Venables, Anthony J., 1995. "Regional economic integration," Handbook of International Economics, in: G. M. Grossman & K. Rogoff (ed.), Handbook of International Economics, edition 1, volume 3, chapter 31, pages 1597-1644 Elsevier.
- Foroutan, Faezeh, 1991. "Foreign trade and its relation to competition and productivity in Turkish industry," Policy Research Working Paper Series 604, The World Bank.
When requesting a correction, please mention this item's handle: RePEc:taf:applec:v:38:y:2006:i:20:p:2443-2452. 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: (Michael McNulty)
If references are entirely missing, you can add them using this form.