Profitability and Price Flexibility in Manufacturing for a Developing Country

Benson M Kaluwa and Gavin Reid

Journal of Industrial Economics, 1991, vol. 39, issue 6, 689-700

Abstract: This paper reports on an econometric structure-performance model for a mixed-market developing economy, the East African state of Malawi. A simultaneous equation model, which was cross-sectionally heteroskedastic and time-wise autoregressive, was estimated by instrumental variables using published and some new unpublished data. A binary probit model was estimated using new primary source data. Scarce factors like working capital and imported raw materials were found to be significant determinants of price-cost margins. Further, for the firms in the survey, upward price flexibility was found to be significantly influenced by reported input scarcities. Copyright 1991 by Blackwell Publishing Ltd.

Date: 1991
References: Add references at CitEc
Citations: View citations in EconPapers (4)

Downloads: (external link)
http://links.jstor.org/sici?sici=0022-1821%2819911 ... 0.CO%3B2-H&origin=bc full text (application/pdf)
Access to full text is restricted to JSTOR subscribers. See http://www.jstor.org for details.

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:bla:jindec:v:39:y:1991:i:6:p:689-700

Ordering information: This journal article can be ordered from
http://www.blackwell ... bs.asp?ref=0022-1821

Access Statistics for this article

Journal of Industrial Economics is currently edited by Pierre Regibeau, Yeon-Koo Che, Kenneth Corts, Thomas Hubbard, Patrick Legros and Frank Verboven

More articles in Journal of Industrial Economics from Wiley Blackwell
Bibliographic data for series maintained by Wiley Content Delivery ().