Markups, bargaining power and offshoring: An empirical assessment

Lourdes Moreno and Diego Rodriguez ()

No 10-05, Working Papers from Asociación Española de Economía y Finanzas Internacionales

Abstract: 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.

Keywords: Markups; Offshoring; Bargaining power. (search for similar items in EconPapers)
JEL-codes: F12 L13 L60 (search for similar items in EconPapers)
Pages: 40 pages
Date: 2010-09
New Economics Papers: this item is included in nep-bec and nep-int
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (17)

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http://www.aeefi.com/RePEc/pdf/defi10-05.pdf (application/pdf)

Related works:
Journal Article: Markups, Bargaining Power and Offshoring: An Empirical Assessment-super-1 (2011)
Working Paper: Markups, bargaining power and offshoring: an empirical assessment (2010)
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Persistent link: https://EconPapers.repec.org/RePEc:aee:wpaper:1005

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