International Competition and the Degree of Monopoly in Australian Manufacturing

Pricing behaviour in open economies is examined by adapting Kalecki's analysis of pricing in closed economies. The parameters of the resulting pricing equation are estimated using data for a sample of Australian manufacturing industries. These estimates are then used to calculate measures reflecting the degree of monopoly for an open economy, which are compared with the ratio of aggregate proceeds to aggregate direct costs as a measure reflecting the degree of monopoly for a closed economy.