Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/144581
Authors: 
Békés, Gábor
Hornok, Cecília
Muraközy, Balázs
Year of Publication: 
2016
Series/Report no.: 
Kiel Working Paper 2044
Abstract: 
We use a unique cross-section survey of manufacturing firms from four European countries (France, Germany, Italy, Spain) linked with balance sheet data to study the relationship between key aspects of globalization and firm-level markups. The main results are: (i) Exporting is positively correlated with markups; (ii) Importing intermediate inputs and outsourcing are also positively correlated with markups; (iii) Firms with affiliates have higher markups than other firms, while simply membership in a group or being foreign-owned seems to be less important; (iv) Perceived competition from low-cost markets is negatively correlated with markups; (v) Higher quality production and innovation, especially if it results in IP, has a strong positive relationship with markups; (vi) While these variables are correlated, they are significant in a joint model including all four groups, and 'fully globalized' firms tend to charge around 100% higher markups than non-globalized firms.
Subjects: 
markups
exporting
importing
FDI
innovation
JEL: 
D22
D24
F14
L11
L60
Document Type: 
Working Paper

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