Price-Cost Margins and Industry Structure in Developing Countries: The Case of Korea

Authors

William F. Shughart II, Utah State UniversityFollow
Mwangi S. Kimenyi
Joon Lee

Document Type

Article

Journal/Book Title/Conference

Bulletin of Economic Research

Volume

42

Publication Date

1990

First Page

197

Last Page

210

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.

Recommended Citation

Price-Cost Margins and Industry Structure in Developing Countries: The Case of Korea” (with Mwangi S. Kimenyi and Joon Lee), Bulletin of Economic Research 42 (July 1990), pp. 197–210.