Publication: On the relationship between international outsourcing and price-cost margins in European industries
On the relationship between international outsourcing and price-cost margins in European industries
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Egger, H., & Egger, P. (2004). On the relationship between international outsourcing and price-cost margins in European industries. Review of Industrial Organization, 25(1), 45–69. https://doi.org/10.1023/B:REIO.0000040475.20301.e5
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This paper sets up a model, where multinationals compete in quantities and domestic firms form a competitive fringe. Within this framework, we analyse the relationship between market concentration, international outsourcing and the industry price-cost margin. The empirical results of a panel of 66 industries and the EU12 countries in the 1990s strongly confirm our theoretical hypotheses. Market concentration and international outsourcing are positively related to industry price–cost margins. In a thought experiment, we show that indus
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Egger, H., & Egger, P. (2004). On the relationship between international outsourcing and price-cost margins in European industries. Review of Industrial Organization, 25(1), 45–69. https://doi.org/10.1023/B:REIO.0000040475.20301.e5