Market structure and price-cost margins in Philippine manufacturing industries

Abstract
We test the hypothesis that variations in industry price-cost margins (PCM) performance are explained by sellers' various structure and conduct variables such as sellers' concentration (i.e., HHI for value added), capital-output ratio, barrier to entry, industry demand growth rate, import penetration export share, and degree of foreign participation (multinational) in four-digit Philippines Standard Industrial Classification manufacturing industries. The statistical analyses are a series of multiple regression equations relating the PCM to the previously-mentioned explanatory variables. Estimation results show a generally positive relationship between sellers' concentration, capital intensity, degree of foreign participation and the PCM. Industry growth rate may either increase or reduce PCM. Imports and exports lower PCM.

This publication has 4 references indexed in Scilit: