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|
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- 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).
- 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.
- 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.
- 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. Full references (including those not matched with items on IDEAS)
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