EconPapers    
Economics at your fingertips  
 

Fixed costs, markups and concentration in Eswatini (Swaziland): A firm‐level analysis of panel data

Samuel Vika Mhlanga and Neil Rankin

South African Journal of Economics, 2021, vol. 89, issue 3, 391-416

Abstract: This paper documents the evolution of markups and concentration, detects causality between firm churning and markups/concentration, and determines the impact of fixed costs on markups. It relies on production data of Eswatini during 1994–2007 to estimate markups using the production approach. It finds elasticities, markups and concentration to be comparable with other findings elsewhere. Although no causality is found from a regression of markups/concentration to entry/exit dynamics an increase in productivity within high capital stock industries and in fixed costs raises average markups. Further research will focus on markup state dependence, unobserved heterogeneity, and endogenous regime switching to enhance understanding of markup pricing.

Date: 2021
References: Add references at CitEc
Citations:

Downloads: (external link)
https://doi.org/10.1111/saje.12289

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:bla:sajeco:v:89:y:2021:i:3:p:391-416

Ordering information: This journal article can be ordered from
http://www.blackwell ... bs.asp?ref=0038-2280

Access Statistics for this article

South African Journal of Economics is currently edited by Philip A. Black

More articles in South African Journal of Economics from Economic Society of South Africa Contact information at EDIRC.
Bibliographic data for series maintained by Wiley Content Delivery (contentdelivery@wiley.com).

 
Page updated 2024-12-28
Handle: RePEc:bla:sajeco:v:89:y:2021:i:3:p:391-416