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FOREIGN TRADE AND DOMESTIC COMPETITION.
- Source :
- Economic Inquiry; Jan1980, Vol. 18 Issue 1, p103, 20p
- Publication Year :
- 1980
-
Abstract
- This paper contains estimates of the determinants of the commodity composition of U.S. trade flows and of price-cost margins in U.S. domestic manufacturing in a simultaneous context. Above-competitive profits in U.S. manufacturing appear to provide a powerful incentive to import competition. These imports, in turn, provide a check on the ability of domestic firms to earn monopoly rents. The estimates indicate that failure to account for imports leads to a substantial under-estimation of the impact of market structure on price-cost margins. The linkages between exports and domestic market conditions appear to be of second-order importance. [ABSTRACT FROM AUTHOR]
- Subjects :
- BUSINESS & economics
UNITED States manufacturing industries
IMPORTS
Subjects
Details
- Language :
- English
- ISSN :
- 00952583
- Volume :
- 18
- Issue :
- 1
- Database :
- Complementary Index
- Journal :
- Economic Inquiry
- Publication Type :
- Academic Journal
- Accession number :
- 4507397
- Full Text :
- https://doi.org/10.1111/j.1465-7295.1980.tb00562.x