Market concentration measures and investment decisions in Mexican manufacturing firms
We study how alternative measures of market concentration may explain investment decisions of Mexican manufacturing firms. The measures include the Herfindahl-Hirschman Index and the Dominance one. The first one is the traditional measure of market structure concentration. The Dominance Index is a competition measure used by Mexican regulators. The econometric assessments suggest that investment decisions of Mexican firms can be better explained by the Dominance Index measure than by the Herfindahl-Hirschman one. Thus our results suggest that the Mexican Dominance Index might be useful as a measure of market structure and competition. Such conclusion is based on several econometric assessments. In all cases we use certain characteristics of the firms (size, cash flows, investment opportunities and capital intensity) as control variables.
|Date of creation:||17 Feb 2010|
|Contact details of provider:|| Postal: Ludwigstraße 33, D-80539 Munich, Germany|
Web page: https://mpra.ub.uni-muenchen.de
More information through EDIRC
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Czarnitzki, Dirk & Binz, Hanna L., 2008.
"R&D Investment and Financing Constraints of Small and Medium-Sized Firm,"
ZEW Discussion Papers
08-047, ZEW - Zentrum für Europäische Wirtschaftsforschung / Center for European Economic Research.
- Dirk Czarnitzki & Hanna Hottenrott, 2011. "R&D investment and financing constraints of small and medium-sized firms," Small Business Economics, Springer, vol. 36(1), pages 65-83, January.
- Marc Escrihuela-Villar, 2008.
"Innovation And Market Concentration With Asymmetric Firms,"
Economics of Innovation and New Technology,
Taylor & Francis Journals, vol. 17(3), pages 195-207.
- Escrihuela-Villar, Marc, 2004. "Innovation and market concentration with asymmetric firms," CFS Working Paper Series 2004/03, Center for Financial Studies (CFS).
- Vinod Mishra, 2007. "The Determinants Of R&D Expenditure Of Firms: Evidence From A Cross-Section Of Indian Firms," Economic Papers, The Economic Society of Australia, vol. 26(3), pages 237-248, 09.
When requesting a correction, please mention this item's handle: RePEc:pra:mprapa:23182. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Joachim Winter)
If references are entirely missing, you can add them using this form.