The Convergence of Price–cost Margins

Boulhol, Hervé

doi:10.1007/s11079-007-9011-2

Cited by 19 publications

(22 citation statements)

References 24 publications

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“…This is consistent with the findings of Abowd and Lemieux (1993) that the bargaining power is positively linked to the size of the rents, and with Dobbelaere (2004) and Dobbelaere and Mairesse (2008). Boulhol (2008) suggests that, as capital return is determined by the share of the rents kept by the firms, an arbitrage reasoning based on capital mobility across sectors can explain this positive correlation.…”

Section: Comparison Of Fe and Gmm Estimatessupporting

confidence: 91%

“…9 The PPI is available at the 5-digit level for the period 1990-2000 and at the 4-digit level for the period 2001-2003. 10 We made two rounds of cleaning: the first in order to harmonize OneSource with Fame and to obtain a unique and coherent dataset, and the second to eliminate outliers and anomalies in the dataset. Details are available upon request.…”

Section: Empirical Strategymentioning

confidence: 99%

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Imports as Product and Labour Market Discipline

2009

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This paper tests the pro-competitive effect of trade in the product and labour markets of UK manufacturing sectors between 1988 and 2003 using a two-stage estimation procedure. In the first stage, we use data on 9820 firms from twenty manufacturing sectors to simultaneously estimate mark-up and workers' bargaining power parameters according to sector, firm size and period. We find a significant drop in both the mark-up and the workers' bargaining power in the mid-nineties. In the second stage, we relate our parameters of interest to trade variables. Our results show that imports from developed countries have significantly contributed to the decrease in both mark-ups and workers' bargaining power.JEL classification : C23, F16, J51, L13.

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Section: Comparison Of Fe and Gmm Estimatessupporting

confidence: 91%

Section: Empirical Strategymentioning

confidence: 99%

Imports as Product and Labour Market Discipline

2009

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“…As a result, the price-cost margins would have decrease faster if the observed increase in offshoring had not taken place in the 90s. Boulhol (2008) also confirms the absence of impact of the increase of imports on price-cost margins using 13 OECD countries Recently, papers have introduced search frictions or inefficient organization form to study the effect of trade liberalization. Using incomplete contract as a source of distortion, we see our paper as part of this ongoing literature.…”

Section: Introductionsupporting

confidence: 64%

Incomplete Contracts and the Impact of Globalization on Consumer Welfare

Defever

2011

SSRN Journal

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We embed a North-South trade model into an incomplete contracts setting where the production of heterogeneous firms can be geographically separated. When a Northern headquarter contracts with a Southern supplier instead of a Northern supplier, the presence of international incomplete contracts may lead to a higher price. As a result, trade liberalization, that induces offshoring, is not necessarily welfare-enhancing for consumers, despite the lower cost of labor in the South. In addition, firms which use the supplier's component intensively, offshore their supplier in the South using outsourcing. As trade costs fall, less componentintensive firms also offshore, but by vertically integrating their supplier. We argue that this organizational change increases production-shifting in the South, implying that a larger number of varieties will be produced in the South where contracts are incomplete. We show that, this may reduce consumer welfare in both countries.

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“…Price-cost margin (PCM) The difference between sales and variable costs over sales, variable costs being the expenditure on labor and materials (Boulhol, 2008) UNIDO database, and authors' calculations Average firm size (AFS) Natural logarithm of the ratio between total employment and total number of establishments UNIDO database, and authors' calculations Industry characteristics…”

Section: Industry Competitionmentioning

confidence: 99%

How Do Regulations of Entry and Credit Access Relate to Industry Competition? International Evidence

Igan¹,

Mirzaei²,

Moore³

2018

IMF Working Papers

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How do Regulations of Entry and Credit Access Relate to Industry Competition? International Evidence by Deniz Igan, Ali Mirzaei, and Tomoe Moore IMF Working Papers describe research in progress by the author(s) and are published to elicit comments and to encourage debate. The views expressed in IMF Working Papers are those of the author(s) and do not necessarily represent the views of the IMF, its Executive Board, or IMF management.

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The Convergence of Price–cost Margins

Abstract: Résumé Cette étude a pour but d'estimer l'évolution des markups de treize pays de l'OCDE au cours des

Cited by 19 publications

References 24 publications

Imports as Product and Labour Market Discipline

Imports as Product and Labour Market Discipline

Incomplete Contracts and the Impact of Globalization on Consumer Welfare

How Do Regulations of Entry and Credit Access Relate to Industry Competition? International Evidence

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