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Competition and Corporate Performance

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  • Stephen Nickell

Abstract

This paper investigates the impact of competition on the productivity performance of companies. The key hypothesis is that firms which operate in a more competitive environment have a higher levels of productivity and/or higher rates of productivity growth. We summarise the theoretical foundation for this hypothesis and the empirical evidence in its favour. Both are very thin. We then present some evidence based on a panel of UK manufacturing companies which provides support for the key hypothesis.

Suggested Citation

  • Stephen Nickell, 1993. "Competition and Corporate Performance," CEP Discussion Papers dp0182, Centre for Economic Performance, LSE.
    • Handle: RePEc:cep:cepdps:dp0182
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    1. Martin Stephen, 1993. "Endogenous Firm Efficiency in a Cournot Principal-Agent Model," Journal of Economic Theory, Elsevier, vol. 59(2), pages 445-450, April.
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    11. Nickell, Stephen & Wadhwani, Sushil & Wall, Martin, 1992. "Productivity growth in U.K. companies, 1975-1986," European Economic Review, Elsevier, vol. 36(5), pages 1055-1085, June.
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