Power Asymmetry and Economic Growth of Industrial Markets: Theoretical and Empirical Analysis

Svetlana V. Orekhova and Yevgeny V. Kislitsyn
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Svetlana V. Orekhova: Ural State University of Economics
Yevgeny V. Kislitsyn: Ural State University of Economics

Journal of New Economy, 2018, vol. 19, issue 4, 121-135

Abstract: The paper studies the impact of power asymmetry on economic growth of industrial markets. Meth? odologically the authors rely on the synthesis of the theory of industrial markets, new institutional eco? nomics and the theory of organisational fields. The authors hold a theoretical analysis of approaches to examining the factors behind economic growth in the industry and prove that competition is one of its drivers. The paper presents a three-step methodology for measuring the level of power asymmetry as the main characteristic of the market inequality. This methodology includes a consistent calculation of the indicators of structural, interactional and institutional asymmetries. To determine the correlation between economic growth of a market and level of power asymmetry in it the researchers build the model of multiple nonlinear regression. Its interpretation indicated that the level of structural and inter? actional asymmetry positively affects the rates of economic growth in the industrial market. The research findings are of applied nature and can provide a basis for designing a strategy of industrial enterprises’ development. In addition, the results of the work can be useful to government bodies when formulating an industrial policy.

Keywords: industry; economic growth; industrial markets; power asymmetry; limited competition; econometric model. (search for similar items in EconPapers)
JEL-codes: L13 L52 O47 (search for similar items in EconPapers)
Date: 2018
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Citations: View citations in EconPapers (1)

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Persistent link: https://EconPapers.repec.org/RePEc:url:izvest:v:19:y:2018:i:4:p:121-135

DOI: 10.29141/2073-1019-2018-19-4-9

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