Abstract
This paper investigates the market structure of the Greek manufacturing industry over the period 1984–2007 at the two-digit SIC level. Three models are used to investigate the competitive conditions of the manufacturing industry. The paper investigates factors affecting the markup of the Greek manufacturing industry by estimating two additional models, i.e., the markup cross-sectional model and the markup time-series model, for identifying both sectoral and intertemporal factors. The empirical results indicate that the whole Greek manufacturing industry, as well as each sector of the industry, operates in non-competitive conditions for each year during the period 1984–2007. The findings also support that labor intensity, the sector size, and the number of establishments influence the markup at the sectoral level, while labor intensity, and the growth and the number of establishments affect the markup over time.
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Notes
OECD is derived from the “Organization for Economic Co-operation and Development”
Note that when the Lerner index is equal to zero, i.e.β t = 0, the industry is under perfectly competitive conditions, whereas a positive Lerner index value, i.e.β t > 0 indicates a non-competitive industry.
Sectors 30 and 37 are omitted due to a lack of available data over the period 1984–2007.
SIC is derived from the “Standard Industrial Classification”.
Note that the number of establishments is used as a proxy for the firms’ number.
Wald statistics (F-statistics) are available from the authors upon request.
Different Operational Programmes such as the “Operational Programme for Research and Technology II, EPET II, 1994–1999 and the “Industrial Research Development Programme (PAVE), 1994–1999 helped improve the country’s research and technological infrastructure and the development of significant research projects.
The first model (Markup cross-sectional model) uses the markup estimates (μ s , s = 15,…,36) of the Hall-Roeger cross-sectional model and the second model (Markup time-series model) uses the markup estimates (μ t , t = 1984,…,2007) of the Hall-Roeger time-series model.
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Acknowledgement
The research Project is co-funded by the European Union - European Social Fund (ESF) & National Sources, in the framework of the program “HRAKLEITOS II” of the “Operational Program Education and Life Long Learning” of the Hellenic Ministry of Education, Life Long Learning and religious affairs.
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An earlier version of this paper was presented at the 71st International Atlantic Economic Conference, Athens, 16–19 March 2011.
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Rezitis, A.N., Kalantzi, M.A. Investigating Market Structure of the Greek Manufacturing Industry: A Hall-Roeger Approach. Atl Econ J 39, 383–400 (2011). https://doi.org/10.1007/s11293-011-9286-y
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DOI: https://doi.org/10.1007/s11293-011-9286-y