Investigating Market Structure of the Greek Food and Beverages Manufacturing Industry : A Hall-Roeger Approach

This paper investigates the market structure of the Greek food and beverages manufacturing industry over the period 1984–2007 at the three-digit SIC level. Based on the Hall-Roeger approach (1995), three models are used to investigate the competitive conditions in the industry. The first model (Hall-Roeger model) assesses the markup in the whole industry over the period 1984–2007. The second model (Hall-Roeger cross-sectional model) tests the extent of the markup for each of the nine sectors of the industry over the period 1984–2007, whereas the third (Hall-Roeger time-series model) estimates the markup for the whole industry for certain sub-periods of the period 1984–2007. The present paper also investigates factors affecting the markup in the Greek food and beverages manufacturing industry during the period 1984–2007. The empirical results indicate that the whole Greek food and beverages manufacturing industry, as well as each sector of the industry, operates in non-competitive conditions during the period 1984–2007. Furthermore, the industry operates in non-competitive conditions for certain sub-periods of the period 1984–2007. The findings also support the view that the sector size, capital intensity and the number of establishments influence the markup in Greek food and beverages manufacturing during the period 1984–2007