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Common Ownership, Domestic Competition, and Export: Evidence from Thailand

Author

Listed:
  • Tosapol Apaitan
  • Chanont Banternghansa
  • Archawa Paweenawat
  • Krislert Samphantharak

Abstract

We use administrative data of all registered firms in Thailand, both public and private, to study the relationships between common ownership, market power, and firms' export behaviors. Our results suggest that firms in ownership networks tend to have higher market power as measured by markup. In addition, markup is negatively associated with a firm's propensity to export, its likelihood of product upgrade, and the chance of survival in foreign markets. Our findings have policy implications on antitrust regulations and competitiveness policies, especially in export-oriented economies dominated by powerful business conglomerates.

Suggested Citation

  • Tosapol Apaitan & Chanont Banternghansa & Archawa Paweenawat & Krislert Samphantharak, 2020. "Common Ownership, Domestic Competition, and Export: Evidence from Thailand," PIER Discussion Papers 140, Puey Ungphakorn Institute for Economic Research.
    • Handle: RePEc:pui:dpaper:140
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    File URL: https://www.pier.or.th/files/dp/pier_dp_140.pdf
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    References listed on IDEAS

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    1. José Azar & Martin C. Schmalz & Isabel Tecu, 2018. "Anticompetitive Effects of Common Ownership," Journal of Finance, American Finance Association, vol. 73(4), pages 1513-1565, August.
    2. Chanont Banternghansa & Archawa Paweenawat & Krislert Samphantharak, 2019. "Understanding Corporate Thailand I: Finance," PIER Discussion Papers 112, Puey Ungphakorn Institute for Economic Research.
    3. Cesar A. Hidalgo & Ricardo Hausmann, 2009. "The Building Blocks of Economic Complexity," Papers 0909.3890, arXiv.org.
    4. Tosapol Apaitan & Nasha Ananchotikul & Piti Disyatat, 2017. "Structural Transformation in Thailand: A Perspective Through Product Innovation," PIER Discussion Papers 72, Puey Ungphakorn Institute for Economic Research.
    5. Kiyohiko Ito & Vladimir Pucik, 1993. "Abstract," Strategic Management Journal, Wiley Blackwell, vol. 14(1), pages 61-75, January.
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    7. Mr. Federico J Diez & Jiayue Fan & Carolina Villegas-Sánchez, 2019. "Global Declining Competition," IMF Working Papers 2019/082, International Monetary Fund.
    8. Villegas-Sanchez, Carolina & Díez, Federico & Fan, Jiayue, 2019. "Global Declining Competition," CEPR Discussion Papers 13696, Centre for Economic Policy Research.
    9. Cavalleri, Maria Chiara & Eliet, Alice & McAdam, Peter & Petroulakis, Filippos & Soares, Ana & Vansteenkiste, Isabel, 2019. "Concentration, market power and dynamism in the euro area," Working Paper Series 2253, European Central Bank.
    10. Tosapol Apaitan & Piti Disyatat & Krislert Samphantharak, 2019. "Dissecting Thailand's International Trade: Evidence from 88 Million Export and Import Entries," Asian Development Review, MIT Press, vol. 36(1), pages 20-53, March.
    11. Gert Bijnens & Joep Konings, 2018. "Declining Business Dynamism," Working Papers of Department of Economics, Leuven 614199, KU Leuven, Faculty of Economics and Business (FEB), Department of Economics, Leuven.
    12. Maarten De Ridder, 2024. "Market Power and Innovation in the Intangible Economy," American Economic Review, American Economic Association, vol. 114(1), pages 199-251, January.
    13. Tommaso Aquilante & Shiv Chowla & Nikola Dacic & Andrew Haldane & Riccardo Masolo & Patrick Schneider & Martin Seneca & Srdan Tatomir, 2019. "Market power and monetary policy," Bank of England working papers 798, Bank of England.
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    Cited by:

    1. World Bank, 2023. "Digital Conglomerates in East Asia," World Bank Publications - Reports 40641, The World Bank Group.
    2. Veerayooth Kanchoochat, 2023. "Siamese Twin Troubles: Structural and Regulatory Transformations in Unequal Thailand," Asian Economic Policy Review, Japan Center for Economic Research, vol. 18(1), pages 47-68, January.
    3. Athiphat Muthitacharoen & Archawa Paweenawat & Krislert Samphantharak & Chanont Banternghansa, 2026. "Gaming the Threshold: Size-Dependent Tax Policy and Domestic Profit Shifting," PIER Discussion Papers 248, Puey Ungphakorn Institute for Economic Research.

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    Keywords

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    JEL classification:

    • D4 - Microeconomics - - Market Structure, Pricing, and Design
    • F1 - International Economics - - Trade
    • G3 - Financial Economics - - Corporate Finance and Governance
    • L2 - Industrial Organization - - Firm Objectives, Organization, and Behavior
    • L4 - Industrial Organization - - Antitrust Issues and Policies
    • O25 - Economic Development, Innovation, Technological Change, and Growth - - Development Planning and Policy - - - Industrial Policy

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