|
|
|
|
||||
|
||||
The Effect of International Trade on Mark-Ups DistributionLourdes MorenoComplutense University of Madrid - Departamento de Fundamentos del Analisis Economico I Diego Rodríguez RodríguezUniversidad Complutense de Madrid (UCM) - Department of Applied Economics II April 26, 2011 Abstract: This paper presents empirical evidence about the relationship between market openness and markup distribution of manufacturing firms. The empirical analysis uses a panel data set of Spanish firms in the period 1990-2005, with a structural approach that lets us to identify individual mark-ups. The results point out that tougher competition associated to openness reduces the average of marginal costs and prices, while it increases the average firm size. However, the evidence about the effect on average markups and the dispersion of performance variables is weaker. These results partially support the theoretical predictions by the recent literature on efficiency heterogeneity and international trade and, in particular, Melitz and Ottaviano (2008).
Number of Pages in PDF File: 17 Keywords: markups, marginal costs, size, openness JEL Classification: F12, L60, L13 working papers seriesDate posted: April 26, 2011 ; Last revised: May 2, 2011Suggested CitationContact Information
|
|
||||||||||||||||
© 2013 Social Science Electronic Publishing, Inc. All Rights Reserved.
FAQ
Terms of Use
Privacy Policy
Copyright
This page was processed by apollo2 in 0.485 seconds
