Business sector mark-up decline in Canada

Mark-up in the Canadian business sector has declined since the mid-1980s, finds a new paper from the Bank of Canada.

While they rose steadily to 8.1% from 1961 to 1985, mark-ups fell by 10% over the next eight years.

There is little evidence that lower inflation influenced these developments.

Import competition made a statistically significant, yet small contribution, to the trend.

Other recent studies showed that business mark-ups have also declined in the US and Britain.

To read the paper, click

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