The 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 two-digit SIC level. The present study also identifies factors which are likely to influence the possible existence of markup in the Greek manufacturing industry. Based on the Hall and Roeger approach (1995), three different models are used to investigate competitive conditions of the Greek manufacturing industry. The first model assesses the markup of the whole Greek manufacturing industry over the period 1984-2007. The second model tests the extent of markup for each one of the twenty-one sectors of the manufacturing industry over the whole period, i.e. 1984-2007, whereas the third one estimates the markup for the whole Greek manufacturing industry for each year of the period 1984-2007. 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. In addition, the empirical findings of the present study support that the whole Greek manufacturing industry operates in non-competitive conditions for each year of the period under consideration, i.e. 1984-2007.