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Efficiency and Market Share in Hungarian Corporate Sector

Author

Listed:
  • Gabor Korosi

    (Institute of Economics, Hungarian Academy of Sciences)

  • Laszlo Halpern

    (Institute of Economics, Hungarian Academy of Sciences)

Abstract

This paper investigates the link between competition and efficiency for the Hungarian corporate sector during various phases of the transition process. We employ frontier production functions to explore differences among groups of firms, and to identify the typical adjustment process of each group separately throughout the transition period until 1997. The estimated production functions indicate a gradual improvement in efficiency and a shift from decreasing to increasing returns to scale due to the growing share of small firms. Market share can be explained by domestic and foreign competition and by the efficiency of the firm.

Suggested Citation

  • Gabor Korosi & Laszlo Halpern, 2000. "Efficiency and Market Share in Hungarian Corporate Sector," CERS-IE WORKING PAPERS 0009, Institute of Economics, Centre for Economic and Regional Studies.
  • Handle: RePEc:has:discpr:0009
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    References listed on IDEAS

    as
    1. Brown, J David & Earle, John, 2000. "Competition And Firm Performance: Lessons From Russia," CEPR Discussion Papers 2444, C.E.P.R. Discussion Papers.
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    4. Laszlo Halpern & Gabor Korosi, 1998. "Corporate Structure and Performance in Hungary," William Davidson Institute Working Papers Series 187, William Davidson Institute at the University of Michigan.
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    8. Hay, Donald A & Liu, Guy S, 1997. "The Efficiency of Firms: What Difference Does Competition Make?," Economic Journal, Royal Economic Society, vol. 107(442), pages 597-617, May.
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    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

    firm in transition economy; production functions; efficiency;
    All these keywords.

    JEL classification:

    • C23 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Models with Panel Data; Spatio-temporal Models
    • D21 - Microeconomics - - Production and Organizations - - - Firm Behavior: Theory
    • D24 - Microeconomics - - Production and Organizations - - - Production; Cost; Capital; Capital, Total Factor, and Multifactor Productivity; Capacity

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