Margin rate and the cycle: the role of trade openness
Gilbert Cette,
Rémy Lecat and
Ahmed Ould Ahmed Jiddou
Applied Economics, 2016, vol. 48, issue 37, 3569-3575
Abstract:
Using three datasets of French manufacturing firms, this article studies the role of trade openness, in relation with the cycle, as a determinant of company margin rate. Margin rates increase as capacity utilization tightens (and vice versa), reflecting the procyclicality of margin rates. However, high import rates are limiting this procyclicality: when capacities are tight, domestic producers may not be able to serve demand, but foreign producers may substitute for them if they are already present on the market as reflected by the level of import rates.
Date: 2016
References: Add references at CitEc
Citations: View citations in EconPapers (1)
Downloads: (external link)
http://hdl.handle.net/10.1080/00036846.2016.1142655 (text/html)
Access to full text is restricted to subscribers.
Related works:
Working Paper: Margin rate and the cycle: the role of trade openness (2016) 
Working Paper: Margin rate and the cycle: the role of trade openness (2016)
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:taf:applec:v:48:y:2016:i:37:p:3569-3575
Ordering information: This journal article can be ordered from
http://www.tandfonline.com/pricing/journal/RAEC20
DOI: 10.1080/00036846.2016.1142655
Access Statistics for this article
Applied Economics is currently edited by Anita Phillips
More articles in Applied Economics from Taylor & Francis Journals
Bibliographic data for series maintained by Chris Longhurst ().