TY - JOUR AU - Onaran, Ozlem AU - Yenturk, Nurhan PY - 2002/12/12 Y2 - 2024/03/29 TI - The Mark-up Rates in Turkish Private Manufacturing Industry During Trade Liberalization JF - Journal of Income Distribution® JA - JID VL - 11 IS - 3-4 SE - Articles DO - 10.25071/1874-6322.1250 UR - https://jid.journals.yorku.ca/index.php/jid/article/view/1250 SP - AB - The aim of this study is to shed light on the movements of the mark-up rate for the case of Turkey following trade liberalization. For this purpose, first the relationship between labor and non-labor costs that lies behind the movements of the mark-up rates is analyzed, and second, the effect of trade liberalization on mark-up rates is tested. The trade-off between labor and non-labor costs is analyzed based on a model, which assumes that prices are set by a mark-up over average variable costs. The paper also tests the effect of international trade on the mark-up rate and the effect of the exchange rate via its effect on competitiveness and input costs using the panel data for the sub-sectors of private manufacturing industry. The most striking result of this analysis is the absence of any strong link between foreign trade and mark-up rates. ER -