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Does Domestic Concentration Cancel the Potentially Beneficial Effect of International Competition on Firm Productivity? Evidence from Manufacturing Firms in Cameroon

Author

Listed:
  • Ariel Herbert Fambeu

    (University of Johannesburg)

  • Patricia Tchawa Yomi

    (GRETA, University of Douala)

Abstract

Using manufacturing firm-level data from the World Bank Enterprise Surveys (WBES) in 2009 and 2016 and Cameroon’s general enterprise censuses, this paper empirically investigates the joint effect of domestic concentration and international competition on productivity. Instrumental variable estimates suggest that exports improve the productivity of firms operating only in industries where concentration is very low. Moreover, participation in the international market has no effect on the productivity of firms operating in the moderately and highly concentrated sectors. Thus, although concentration has no direct effect on productivity, it nevertheless reduces the positive effect of international competition (through exports). This study not only serves as a reference for future investigations but also carries significant theoretical and empirical implications.

Suggested Citation

  • Ariel Herbert Fambeu & Patricia Tchawa Yomi, 2025. "Does Domestic Concentration Cancel the Potentially Beneficial Effect of International Competition on Firm Productivity? Evidence from Manufacturing Firms in Cameroon," Journal of the Knowledge Economy, Springer;Portland International Center for Management of Engineering and Technology (PICMET), vol. 16(4), pages 14818-14841, October.
    • Handle: RePEc:spr:jknowl:v:16:y:2025:i:4:d:10.1007_s13132-024-02388-9
    DOI: 10.1007/s13132-024-02388-9
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    JEL classification:

    • C26 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Instrumental Variables (IV) Estimation
    • D4 - Microeconomics - - Market Structure, Pricing, and Design
    • F12 - International Economics - - Trade - - - Models of Trade with Imperfect Competition and Scale Economies; Fragmentation
    • J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity
    • L1 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance

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