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Why Haven't Price-Cost Margins Decreased with Globalization ?
| Content Provider | Semantic Scholar |
|---|---|
| Author | Boulhol, Hervé |
| Copyright Year | 2005 |
| Abstract | This study analyzes the determinants of price-cost margins (PCMs) for OECD countries between 1970-2003. The main objective is to quantify the pro-competitive effect of international trade and understand why, despite trade liberalization, PCMs have not fallen overall. An increase of one percentage point in the import penetration ratio is estimated to lower the PCM by around 0,005 : on average, imports contributed to a large decrease of 0,042 in the PCM. In addition, domestic product market deregulation has reduced PCMs. However, these effects are countervailed by the impacts of exports, financial deepening and disinflation. Union participation seems negatively related to PCMs. |
| File Format | PDF HTM / HTML |
| Alternate Webpage(s) | https://halshs.archives-ouvertes.fr/halshs-00084267/document |
| Alternate Webpage(s) | https://halshs.archives-ouvertes.fr/file/index/docid/84267/filename/Bla06007.pdf |
| Alternate Webpage(s) | http://www.etsg.org/ETSG2005/papers/boulhol.pdf |
| Language | English |
| Access Restriction | Open |
| Content Type | Text |
| Resource Type | Article |