1. bookVolume 9 (2021): Issue 1 (September 2021)
Journal Details
License
Format
Journal
eISSN
2360-0047
First Published
17 Oct 2014
Publication timeframe
1 time per year
Languages
English
access type Open Access

Price Markups and Upstreamness in World Input-Output Data

Published Online: 27 Sep 2021
Volume & Issue: Volume 9 (2021) - Issue 1 (September 2021)
Page range: 71 - 85
Journal Details
License
Format
Journal
eISSN
2360-0047
First Published
17 Oct 2014
Publication timeframe
1 time per year
Languages
English
Abstract

This research uses the publicly available World Input-Output Database (WIOD) to investigate the relationship between an industry’s markup and its upstreamness, the industry’s position in the vertical chain of production; the research also identifies common attributes among high-markup industrial sectors: higher-markup industries display a higher level of capital compensation and a lower share of labour and other inputs in the value of output. Finally, it is found that upstream industries, those producing mostly raw materials and intermediate products enjoy higher market power than their downstream counterparts. This result could be among the first in the literature to find evidence of double marginalization at an industry level of aggregation. It also suggests that virtually all final product prices may incorporate substantial markups through their inputs.

Keywords

JEL Classification

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