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