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. Three models are used to investigate the competitive conditions of the manufacturing industry. The paper 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 for each year during 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, while labor intensity, and the growth and the number of establishments affect the markup over time.