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Does Competition Improve Performance? Evidence from the Czech Manufacturing Industries

  • Andrei Medvedev
  • Alena Zemplinerová

The paper investigates both the impact of domestic and import competition on performance of manufacturing industries in the Czech Republic in 1998 - 2002. Using panel data we found a strong increasing non-linear (diminishing) relationship between performance of manufacturing industries and domestic competition measured by the Herfindahl-Hirschman Index. Import competition measured by an import penetration ratio is negatively related to performance of Czech industries, while foreign direct investments are positively correlated with performance.

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Article provided by University of Economics, Prague in its journal Prague Economic Papers.

Volume (Year): 2005 (2005)
Issue (Month): 4 ()
Pages: 317-330

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Handle: RePEc:prg:jnlpep:v:2005:y:2005:i:4:id:268:p:317-330
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  1. Klara Sabirianova Peter & Jan Svejnar & Katherine Terrell, 2012. "Foreign Investment, Corporate Ownership, and Development: Are Firms in Emerging Markets Catching Up to the World Standard?," The Review of Economics and Statistics, MIT Press, vol. 94(4), pages 981-999, November.
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  15. Jozef Konings & Patrick Van Cayseele & Frederic Warzynski, 2003. "The Effects Of Privatization And International Competitive Pressure On Firms??? Price-Cost Margins: Micro Evidence From Emerging Economies1," William Davidson Institute Working Papers Series 2003-603, William Davidson Institute at the University of Michigan.
  16. Ashenfelter, Orley C, 1978. "Estimating the Effect of Training Programs on Earnings," The Review of Economics and Statistics, MIT Press, vol. 60(1), pages 47-57, February.
  17. Alena Zemplinerová, 1998. "Impact of foreign direct investment on the restructuring and growth in manufacturing," Prague Economic Papers, University of Economics, Prague, vol. 1998(4), pages -.
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