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Markups, bargaining power and offshoring: an empirical assessment

This paper tests the pro-competitive effect of imports on product and labour markets for Spanish manufacturing firms in the period 1990-2005. In doing so, it takes into account the type of imported products: final vs intermediate. Markups are estimated following the procedure suggested by Roeger (1995) and including an efficient bargaining model. The observed heterogeneity among firms is parameterized to consider additional product standardization and market concentration. The results support the Imports as Market Discipline hypothesis for importers of final goods, while firms that offshore intermediate inputs show similar markups to non-importers. Additionally, the union bargaining power is smaller the more final-goods oriented imports are and the more homogeneous is the type of goods elaborated by firms.

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File URL: http://mpra.ub.uni-muenchen.de/23587/1/MPRA_paper_23587.pdf
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Paper provided by University Library of Munich, Germany in its series MPRA Paper with number 23587.

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Date of creation: 10 Apr 2010
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Handle: RePEc:pra:mprapa:23587
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  13. repec:dgr:uvatin:20090002 is not listed on IDEAS
  14. Karsten Bjerring Olsen, 2006. "Productivity Impacts of Offshoring and Outsourcing: A Review," OECD Science, Technology and Industry Working Papers 2006/1, OECD Publishing.
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