Empirical Analysis on the Effects of the Input Factor Price on the Industrial Markups in Korean Manufacturing Industries

생산요소가격의 변화가 제조산업 마크업에 미치는 영향에 관한 실증분석

  • 강주훈 (가톨릭관동대학교 경제금융학과)
  • Received : 2016.05.15
  • Accepted : 2016.06.23
  • Published : 2016.06.30

Abstract

This paper is to set up the empirical model in order to estimate industrial markup and to analyze the determinants for industrial markup by estimating the factor price elasticities of markup in the Korean manufacturing industries using the autoregressive distributed model. The import price elasticities of markup were estimated to be -1.025, -0.176, and -0.260 respectively in Machinery products, Chemical products, and Metallics which proved to have higher ratios of imported intermediate goods to industrial output. The interest elasticities of markup were also estimated to be -0.165, -0.147, and -0.210 respectively in Chemical products, Metallics, and Machinery products which are capital-intensive industries. Thus, the paper suggests that both import price index and interest rate have had more decisive effects on the changes in industrial markup in the Korean manufacturing industries, in particular, since the foreign currency crisis beginning in late 1997.

Acknowledgement

Supported by : 가톨릭관동대학교