PRICE‐COST MARGINS AND INDUSTRY STRUCTURE IN DEVELOPING COUNTRIES: THE CASE OF KOREA

Mwangi S. Kimenyi, Jooh Lee, William F. Shughart

Research output: Contribution to journalArticlepeer-review

1 Scopus citations

Abstract

The structure‐conduct‐performance paradigm is tested using 4‐digit SIC Korean industry data for 1981 and 1986. The study investigates whether the observed institutional differences between developed and developing countries affects the performance hypothesis. The results suggest that structure and conduct variables influence price‐cost margins in much the same way as they do in developed countries. Nevertheless, the Korean government's credit rationing policies, by creating entry barriers, have the most important effects on industry performance.

Original languageEnglish (US)
Pages (from-to)197-210
Number of pages14
JournalBulletin of Economic Research
Volume42
Issue number3
DOIs
StatePublished - Jan 1 1990

All Science Journal Classification (ASJC) codes

  • Economics and Econometrics

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