earticle

영어

There have been remarkable declines in input factor prices in the Korean economy since the foreign exchange crisis starting at the end of 1997. These remarkable declines in factor prices are expected to have substantial effects on the industrial markups in the tourism service industries. This paper established the markup equation based on the constant returns to scale production function including intermediate goods and estimated the industrial markups in tourism service industries over the period 1975:1-2010:4. The paper also analyzed the effects of input prices on the industrial markups in tourism service industries. The empirical results provided some evidences that price changes in factor markets have contributed to variations in industrial markup for tourism service industries.