The mark-up rates in Turkish private manufacturing industry during trade liberalization
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Date
2002
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info:eu-repo/semantics/closedAccess
Abstract
The aim of this study is to shed light on the movements of the mark-up rate for the case of Turkey following trade liberalization. For this purpose, first the relationship between the labor and non-labor costs that lies behind the movements of the mark-up rate is analyzed, and second, the effect of trade liberalization on mark-up rates is tested. The trade-off between labor and non-labor costs is analyzed based on a model, which assumes that prices are set by a mark-up over average variable costs. The paper also tests the effect of international trade on the mark-up rate and the effect of the exchange rate via its effect on competitiveness and input costs using the panel data for the sub-sectors of private manufacturing industry. The most striking result of this analysis is the absence of any strong link between foreign trade and the mark-up rates.
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Keywords
Distribution, Mark-Up, Structural Adjustment, Trade Liberalization
Journal or Series
Journal of Income Distribution
WoS Q Value
Scopus Q Value
N/A
Volume
11
Issue
3-4
