Market Power and Industrial Performance in Pakistan
AbstractUsing a panel of eight Pakistani manufacturing industries, we have examined the changes in price-cost margin (gross profitability) during 1998- 2009. In this study the traditional industrial organization approach of Structure- Performance has been applied to analyse the effects of concentration and import intensity on price-cost margins. It has been found that market concentration measured by four-firm concentration leads to high price-cost margin. Imports have the tendency to make the domestic firms more competitive, but their effect on more-concentrated firms is smaller as compared to non-concentrated firms. The minimum efficient scale and assets of industry have positive effects on margins while capital intensity has been found to reduce gross profitability.
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Bibliographic InfoPaper provided by Pakistan Institute of Development Economics in its series PIDE-Working Papers with number 2013:88.
Length: 30 pages
Date of creation: 2013
Date of revision:
Price-Cost Margin; Concentration; Manufacturing; Pakistan;
This paper has been announced in the following NEP Reports:
- NEP-ALL-2013-04-13 (All new papers)
- NEP-COM-2013-04-13 (Industrial Competition)
- NEP-CSE-2013-04-13 (Economics of Strategic Management)
- NEP-EFF-2013-04-13 (Efficiency & Productivity)
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