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

This paper investigates the market structure of the Greek manufacturing industry over the period 1984–2007 at the two-digit SIC level. Based on the Hall-Roeger approach (1995), three models are used to investigate the competitive conditions of the manufacturing industry. The first model (Hall-Roeger model) assesses the markup of the whole industry over the period 1984–2007. The second model (Hall-Roeger cross-sectional model) tests the extent of markup for each one of the 21 sectors of the industry over the period 1984–2007 whereas the third one (Hall-Roeger time-series model) estimates the markup for the whole manufacture for each year of the period 1984–2007. The present paper also investigates factors affecting the markup of the Greek manufacturing industry by estimating two additional models, i.e. the markup cross-sectional model and the markup time-series model, for identifying both sectoral and intertemporal factors. The empirical results indicate that the whole Greek manufacturing industry, as well as each sector of the industry operates in non-competitive conditions during the period 1984–2007 and the whole Greek manufacturing industry operates in non-competitive conditions for each year of the period 1984–2007. The findings also support that labor intensity, the sector size and the number of establishments influence the markup at the sectoral level and labor intensity, the growth and the number of establishments affect the markup over time