The Impact of Imports on Price-Cost Margins: An Empirical Illustration

Rigoberto Lopez and Elena Lopez

No 25153, Research Reports from University of Connecticut, Food Marketing Policy Center

Abstract: This article decomposes the impact of imports on domestic price-cost margins into separate price and cost effects. Using data from 24 food-processing industries, the empirical results show that although the direct impact of imports on prices is always negative, a positive net impact on price-cost margins occurs in industries characterized by low own-price elasticity of demand and diseconomies of scale. Further results show that the disciplining effect of imports is more preponderant the lower the degree of domestic competition.

Keywords: Agribusiness; Demand and Price Analysis; International Relations/Trade (search for similar items in EconPapers)
Pages: 16
Date: 2001
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Citations: View citations in EconPapers (1)

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Journal Article: The impact of imports on price-cost margins: An empirical illustration (2003)
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Persistent link: https://EconPapers.repec.org/RePEc:ags:uconnr:25153

DOI: 10.22004/ag.econ.25153

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