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Productivity Differential and Competition: Can an Old Dog be Taught New Tricks?

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Author Info
Poltavets Ivan ()
Abstract

Belief that competition is beneficial in general and for productive efficiency in particular is likely to root in competition's well established and rigorously proved positive relation to the optimal allocation of economic resources. This paper looking at the production side of the economy attempts to provide another argument in favor of competition as a productivity enhancing mechanism or to raise the issue of the importance of competition in a transition context. The author suggests an alternative view of the subject, which is merely 'traditional' in the literature devoted to transition economies, by indirect testing of the competition effect on the individual firms' productivity. The project strives to test the relationship between the level of competition and variance of technical efficiency of individual enterprises.

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Paper provided by EERC Research Network, Russia and CIS in its series EERC Working Paper Series with number 05-09e.

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Date of creation: 06 Jul 2005
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Handle: RePEc:eer:wpalle:05-09e

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Related research
Keywords: Ukraine; competition; market structure; productivity; efficiency.;

Find related papers by JEL classification:
L11 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Production, Pricing, and Market Structure; Size Distribution of Firms
L16 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Industrial Organization and Macroeconomics; Macroeconomic Industrial Structure
D24 - Microeconomics - - Production and Organizations - - - Production; Capital and Total Factor Productivity; Capacity
C51 - Mathematical and Quantitative Methods - - Econometric Modeling - - - Model Construction and Estimation

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