The Impact of Imports on Price-Cost Margins: An Empirical Illustration
This article decomposes the impact of imports on domestic price-cost margins into separate price and cost effects. Using data from 24 food-processing industries, the empirical results show that although the direct impact of imports on prices is always negative, a positive net impact on price-cost margins occurs in industries characterized by low own-price elasticity of demand and diseconomies of scale. Further results show that the disciplining effect of imports is more preponderant the lower the degree of domestic competition.
|Date of creation:||2001|
|Contact details of provider:|| Postal: 1376 Storrs Road, Unit 4021, Storrs, CT 06269-4021|
Phone: (860) 486-2836
Fax: (860) 486-1932
Web page: http://www.fmpc.uconn.edu/
More information through EDIRC
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.:
- Eric J. Bartelsman & Wayne Gray, 1996. "The NBER Manufacturing Productivity Database," NBER Technical Working Papers 0205, National Bureau of Economic Research, Inc.
- Pagoulatos, Emilio & Sorensen, Robert, 1986. "What determines the elasticity of industry demand?," International Journal of Industrial Organization, Elsevier, vol. 4(3), pages 237-250, September.
- Levinsohn, James, 1993.
"Testing the imports-as-market-discipline hypothesis,"
Journal of International Economics,
Elsevier, vol. 35(1-2), pages 1-22, August.
- Levinsohn, J., 1991. "Testing the Imports-As-Market-Discipline Hypothesis," Working Papers 272, Research Seminar in International Economics, University of Michigan.
- James Levinsohn, 1991. "Testing the Imports-as-Market-Discipline Hypothesis," NBER Working Papers 3657, National Bureau of Economic Research, Inc.
- Catherine J. Morrison, 1990. "Market Power, Economic Profitability and Productivity Growth Measurement: An Integrated Structural Approach," NBER Working Papers 3355, National Bureau of Economic Research, Inc.
- Sanjib Bhuyan & Rigoberto A. Lopez, 1997. "Oligopoly Power in the Food and Tobacco Industries," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 79(3), pages 1035-1043.
- Ianchovichina, Elena & Binkley, James & Hertel, Thomas, 2000. "Procompetitive Effects of Foreign Competition on Domestic Markups," Review of International Economics, Wiley Blackwell, vol. 8(1), pages 134-148, February.
- Stalhammar, Nils-Olov, 1991. "Domestic market power and foreign trade : The case of Sweden," International Journal of Industrial Organization, Elsevier, vol. 9(3), pages 407-424, September.
- Marvel, Howard P, 1980. "Foreign Trade and Domestic Competition," Economic Inquiry, Western Economic Association International, vol. 18(1), pages 103-22, January.
- Geroski, P. A., 1982. "Simultaneous equations models of the structure-performance paradigm," European Economic Review, Elsevier, vol. 19(1), pages 145-158.
- Esposito, Louis & Esposito, Frances Ferguson, 1971. "Foreign Competition and Domestic Industry Profitability," The Review of Economics and Statistics, MIT Press, vol. 53(4), pages 343-353, November.
- Robert C. Feenstra, 1996. "U.S. Imports, 1972-1994: Data and Concordances," NBER Working Papers 5515, National Bureau of Economic Research, Inc.
- Appelbaum, Elie, 1982. "The estimation of the degree of oligopoly power," Journal of Econometrics, Elsevier, vol. 19(2-3), pages 287-299, August.
- de Ghellinck, Elisabeth & Geroski, Paul A & Jacquemin, Alexis, 1988. "Inter-industry Variations in the Effect of Trade on Industry Performance," Journal of Industrial Economics, Wiley Blackwell, vol. 37(1), pages 1-19, September.
- Martha Field & Emilio Pagoulatos, 1998. "Foreign trade elasticities and import discipline," Applied Economics, Taylor & Francis Journals, vol. 30(1), pages 105-111.
- Haubrich, Joseph G. & Lambson, Val Eugene, 1986. "Dynamic collusion in an open economy," Economics Letters, Elsevier, vol. 20(1), pages 75-78.
- Neumann, Manfred & Bobel, Ingo & Haid, Alfred, 1985. "Domestic concentration, foreign trade and economic performance," International Journal of Industrial Organization, Elsevier, vol. 3(1), pages 1-19, March.
- Chou, Tein-Chen, 1986. "Concentration, Profitability and Trade in a Simultaneous Equation Analysis: The Case of Taiwan," Journal of Industrial Economics, Wiley Blackwell, vol. 34(4), pages 429-443, June.
When requesting a correction, please mention this item's handle: RePEc:ags:uconnr:25153. 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: (AgEcon Search)
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.