Market concentration and producer prices
This study investigates the role of sectoral market structure in the inflationary dynamics of the domestic producer prices (D-PPI) in Türkiye. We start by reporting the fact that industries with intense competition had lower producer price inflation compared to industries with low-competition in the...
| Main Authors: | , |
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| Format: | Article |
| Language: | English |
| Published: |
Elsevier
2023-03-01
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| Series: | Central Bank Review |
| Subjects: | |
| Online Access: | http://www.sciencedirect.com/science/article/pii/S130307012300001X |
| _version_ | 1797854372219060224 |
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| author | Huzeyfe Torun Ahmet Duhan Yassa |
| author_facet | Huzeyfe Torun Ahmet Duhan Yassa |
| author_sort | Huzeyfe Torun |
| collection | DOAJ |
| description | This study investigates the role of sectoral market structure in the inflationary dynamics of the domestic producer prices (D-PPI) in Türkiye. We start by reporting the fact that industries with intense competition had lower producer price inflation compared to industries with low-competition in the past few years. Further investigation shows that this differentiation across industries corresponds to the years with higher exchange rate volatility. The industries characterized with low-competition have higher annual producer price inflation on average than those that are characterized with high-competition especially during the periods of high exchange rate volatility. Results are robust to a wide set of additional specifications and cast light on the role of market structure on firms’ pricing behavior in Türkiye. |
| first_indexed | 2024-04-09T20:06:02Z |
| format | Article |
| id | doaj.art-fe09712aca614388a053f47f0ea66e61 |
| institution | Directory Open Access Journal |
| issn | 1303-0701 |
| language | English |
| last_indexed | 2024-04-09T20:06:02Z |
| publishDate | 2023-03-01 |
| publisher | Elsevier |
| record_format | Article |
| series | Central Bank Review |
| spelling | doaj.art-fe09712aca614388a053f47f0ea66e612023-04-02T06:12:05ZengElsevierCentral Bank Review1303-07012023-03-01231100106Market concentration and producer pricesHuzeyfe Torun0Ahmet Duhan Yassa1Central Bank of the Republic of Türkiye, Structural Economic Research Department, Ulus, 06050, Ankara, TurkeyCorresponding author.; Central Bank of the Republic of Türkiye, Structural Economic Research Department, Ulus, 06050, Ankara, TurkeyThis study investigates the role of sectoral market structure in the inflationary dynamics of the domestic producer prices (D-PPI) in Türkiye. We start by reporting the fact that industries with intense competition had lower producer price inflation compared to industries with low-competition in the past few years. Further investigation shows that this differentiation across industries corresponds to the years with higher exchange rate volatility. The industries characterized with low-competition have higher annual producer price inflation on average than those that are characterized with high-competition especially during the periods of high exchange rate volatility. Results are robust to a wide set of additional specifications and cast light on the role of market structure on firms’ pricing behavior in Türkiye.http://www.sciencedirect.com/science/article/pii/S130307012300001XD4E31F31L11 |
| spellingShingle | Huzeyfe Torun Ahmet Duhan Yassa Market concentration and producer prices Central Bank Review D4 E31 F31 L11 |
| title | Market concentration and producer prices |
| title_full | Market concentration and producer prices |
| title_fullStr | Market concentration and producer prices |
| title_full_unstemmed | Market concentration and producer prices |
| title_short | Market concentration and producer prices |
| title_sort | market concentration and producer prices |
| topic | D4 E31 F31 L11 |
| url | http://www.sciencedirect.com/science/article/pii/S130307012300001X |
| work_keys_str_mv | AT huzeyfetorun marketconcentrationandproducerprices AT ahmetduhanyassa marketconcentrationandproducerprices |