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Import Competition, Product Differentiation and Mark-Ups - Microeconomic evidence from Swedish manufacturing in the 1990s

Nannan Lundin ()

No 195, Working Paper Series from Trade Union Institute for Economic Research

Abstract: This paper examines how import competition from different origins and the presence of product differentiation affect market power of Swedish manufacturing firms during the 1990s. Applying Roeger’s method (1995), I perform the empirical analysis based on detailed firm-level data and estimate an average mark-up level of Swedish manufacturing firms. The general finding is that imports from both European countries and other highincome countries outside Europe impose disciplinary effects on price-cost margin of Swedish manufacturing firms. The strongest effect is from the recent EU member countries. However, the competitive pressure associated with import is relaxed in the presence of product differentiation.

Keywords: Import competition; Mark-up; Market structure; Product differentiation (search for similar items in EconPapers)
JEL-codes: F12 F15 L13 L60 (search for similar items in EconPapers)
Pages: 33 pages
Date: 2004-10-07
New Economics Papers: this item is included in nep-bec and nep-com
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (7)

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Persistent link: https://EconPapers.repec.org/RePEc:hhs:fiefwp:0195

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