Estructura de mercado: concentración e importaciones como determinantes de los márgenes de la industria
The paper analyzes the determinants of price-cost margins following traditional industrial organization approaches. The price-cost margins are made function of the concentration index and the degree of import penetration. We find that imports act as a market disciplining device that reduces the pric...
| Main Authors: | , |
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| Format: | Online |
| Language: | English |
| Editor: |
El Colegio de México, A.C.
2006
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| Subjects: | |
| Online Access: | https://estudioseconomicos.colmex.mx/index.php/economicos/article/view/154 |
| Journal: |
Estudios Económicos |
| Summary: | The paper analyzes the determinants of price-cost margins following traditional industrial organization approaches. The price-cost margins are made function of the concentration index and the degree of import penetration. We find that imports act as a market disciplining device that reduces the price-cost margins of the domestic industry. After trade liberalization, the impact of concentration diminishes. Controlling for cyclical behavior of the price-cost margins the paper shows that cross-section studies tend to bias the estimates. A distinction between durables and non-durables is made, finding strong evidence for concentration to affect the price-cost margins of durables. |
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