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Entry barriers and markup ratios: evidence from OECD countries

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  • Haibin Wu

Abstract

This article examines the effects of industrial natural entry barrier and country entry regulation on industrial markups for 13 OECD countries. We find that markup ratios are high in industries with high natural entry barrier and in countries with high-entry regulation. In addition, markups are high in high natural entry barrier industries in high-entry regulation countries. However, all these effects are not significant, thus implying that entry barrier may not have a strong effect on the market power or profitability.

Suggested Citation

  • Haibin Wu, 2009. "Entry barriers and markup ratios: evidence from OECD countries," Applied Economics Letters, Taylor & Francis Journals, vol. 16(2), pages 125-130.
    • Handle: RePEc:taf:apeclt:v:16:y:2009:i:2:p:125-130
    DOI: 10.1080/13504850601018122
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    References listed on IDEAS

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    1. Michael Polemis & Panagiotis Fotis, 2016. "Measuring the Magnitude of Significant Market Power in the Manufacturing and Services Industries: A Cross Country Approach," Journal of Industry, Competition and Trade, Springer, vol. 16(1), pages 51-79, March.
    2. Kemp-Benedict, Eric, 2013. "Resource Return on Investment under Markup Pricing," MPRA Paper 49154, University Library of Munich, Germany.
    3. Kemp-Benedict, Eric, 2014. "The inverted pyramid: A neo-Ricardian view on the economy–environment relationship," Ecological Economics, Elsevier, vol. 107(C), pages 230-241.
    4. Kemp-Benedict Eric, 2017. "Dynamic Stability of Post-Keynesian Pricing," The B.E. Journal of Theoretical Economics, De Gruyter, vol. 17(2), pages 1-12, June.
    5. Kemp-Benedict, Eric, 2014. "A Kaleckian Model with Intermediate Goods," MPRA Paper 57076, University Library of Munich, Germany.

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