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Market Power and Industrial Performance in Pakistan

  • Akbar Ullah

    (Pakistan Institute of Development Economics, Islamabad)

  • Ejaz Ghani

    (Pakistan Institute of Development Economics, Islamabad)

  • Attiya Y. Javed

    (Pakistan Institute of Development Economics, Islamabad)

Registered author(s):

    Using 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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    File URL: http://www.pide.org.pk/pdf/Working%20Paper/WorkingPaper-88.pdf
    File Function: First Version, 2013
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    Paper provided by Pakistan Institute of Development Economics in its series PIDE-Working Papers with number 2013:88.

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    Length: 30 pages
    Date of creation: 2013
    Date of revision:
    Handle: RePEc:pid:wpaper:2013:88
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