Market Power and Industrial Performance in Pakistan

Akbar Ullah (), Ejaz Ghani and Attiya Y. Javed
Additional contact information
Ejaz Ghani: Pakistan Institute of Development Economics, Islamabad
Attiya Y. Javed: Pakistan Institute of Development Economics, Islamabad

No 2013:88, PIDE-Working Papers from Pakistan Institute of Development Economics

Abstract: 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.

Keywords: Price-Cost Margin; Concentration; Manufacturing; Pakistan (search for similar items in EconPapers)
Pages: 30 pages
Date: 2013
New Economics Papers: this item is included in nep-com, nep-cse and nep-eff
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Citations: View citations in EconPapers (1)

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Related works:
Working Paper: Market Power and Industrial Performance in Pakistan (2013)
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