An empirical model of mark-ups in a quality-differentiated export market

Research output: Contribution to journalArticle

12 Citations (Scopus)

Abstract

This paper develops an empirical model to allow for imperfect competition in the market for traded goods. A simultaneous equation model incorporating the demand for and supply of Taiwanese footwear exports to the United States is specified and estimated. The model allows the identification of two separate sources of mark-ups in export prices. The first comes from the U.S.-imposed quantitative restriction on these exports. The second comes from imperfect competition in the international market for these exports. The results suggest competitive behavior by Taiwanese footwear exporters. The quantitative restriction resulted in a 16.9 percent mark-up of prices over marginal cost.

Original languageEnglish (US)
Pages (from-to)327-344
Number of pages18
JournalJournal of International Economics
Volume33
Issue number3-4
DOIs
StatePublished - Jan 1 1992

Fingerprint

Markups
Export markets
Empirical model
Imperfect competition
Footwear
Simultaneous equations model
International markets
Markup
Marginal cost
Exporters
Export prices
Competitive behavior

All Science Journal Classification (ASJC) codes

  • Finance
  • Economics and Econometrics

Cite this

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An empirical model of mark-ups in a quality-differentiated export market. / Roberts, Bee Yan.

In: Journal of International Economics, Vol. 33, No. 3-4, 01.01.1992, p. 327-344.

Research output: Contribution to journalArticle

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