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|Other Titles: ||PCM, Concentration, Import and Export Shares: The Case of Taiwan's Midstream Petrochemical Industries|
Price-cost margin;Domestic concentration;Import share;Export share;3SLS
|Issue Date: ||2014-04-14 17:39:40 (UTC+8)|
Since the liberalization policy was adopted by the government in 1986, the tariffs and import restrictions of petrochemical products in Taiwan have been continuously reduced. Accompanied by these changes, domestic firms' PCM domestic concentration and import share have fluctuated significantly although export share has been continuously rising. The above fluctuation and trend in Taiwan's midstream petrochemical industries imply that there might exist simultaneous relationships among them. In order to investigate the effects of international trade on market structure and performance, causalities among domestic firms' PCM domestic concentration, import and export shares are derived based on an open-economy oligopoly model, and a simultaneous-equation system is established. The data set used in this paper consists of 21 midstream petrochemical industries. Since the data of H(superscript d) on some midstream petrochemical industries are unavailable before 1989 and after 1997, the period covered by this paper spans from 1989 to 1997, during which annual data are available for all midstream petrochemical industries under examination. Although the number of dependent and independent variables in the simultaneous-equation system is only 12, the total number of variables needed for creating these 12 variables is much more than that. Therefore, the data set is a little bit complicated, coming from 6 different sources. By utilizing the 1989-1997 data of Taiwan midstream petrochemical industries, 3SLS is used to estimate the system. The regression results confirm the causalities derived from the theoretical model, and demonstrate that there do exist simultaneous relationships among domestic firms' PCM, domestic concentration, import and export shares in Taiwan midstream petrochemical industries. Specifically, domestic concentration affects domestic firms' PCM positively while import share, export share, import concentration and country concentration of exports affect domestic firms' PCM negatively. Domestic firms' PCM import share and import concentration affect domestic concentration positively while market size affects domestic concentration negatively Domestic concentration and cost differential affect import share positively while domestic firms' PCM, export share, import concentration and capacity utilization affect import share negatively. Domestic firms' PCM, import share and import concentration affect export share negatively Based on the derived causalities, the above empirical results imply domestic firms seem to be in a situation of collusion during the period of 1989-1997, and the collusive behavior probably has originated from their subsidiary or old employer-employee relationship.
|Relation: ||管理學報, 23(6),677-690|
|Data Type: ||article|
|Appears in Collections:||[經濟學系] 期刊論文|
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