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Entry barriers and markup ratios: evidence from OECD countries

Entry barriers and markup ratios: evidence from OECD countries This article examines the effects of industrial natural entry barrier and country entry regulation on industrial markups for 13 OECD countries. We find that markup ratios are high in industries with high natural entry barrier and in countries with high-entry regulation. In addition, markups are high in high natural entry barrier industries in high-entry regulation countries. However, all these effects are not significant, thus implying that entry barrier may not have a strong effect on the market power or profitability. http://www.deepdyve.com/assets/images/DeepDyve-Logo-lg.png Applied Economics Letters Taylor & Francis

Entry barriers and markup ratios: evidence from OECD countries

Applied Economics Letters , Volume 16 (2): 6 – Jan 26, 2009
6 pages

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References (23)

Publisher
Taylor & Francis
Copyright
Copyright Taylor & Francis Group, LLC
ISSN
1466-4291
eISSN
1350-4851
DOI
10.1080/13504850601018122
Publisher site
See Article on Publisher Site

Abstract

This article examines the effects of industrial natural entry barrier and country entry regulation on industrial markups for 13 OECD countries. We find that markup ratios are high in industries with high natural entry barrier and in countries with high-entry regulation. In addition, markups are high in high natural entry barrier industries in high-entry regulation countries. However, all these effects are not significant, thus implying that entry barrier may not have a strong effect on the market power or profitability.

Journal

Applied Economics LettersTaylor & Francis

Published: Jan 26, 2009

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