Efficiency and Market Share in Hungarian Corporate Sector

Gabor Korosi and László Halpern ()

No 9, IEHAS Discussion Papers from Institute of Economics, Hungarian Academy of Sciences

Abstract: This paper investigates the link between competition and efficiency for the Hungarian corporate sector during various phases of the transition process. We employ frontier production functions to explore differences among groups of firms, and to identify the typical adjustment process of each group separately throughout the transition period until 1997. The estimated production functions indicate a gradual improvement in efficiency and a shift from decreasing to increasing returns to scale due to the growing share of small firms. Market share can be explained by domestic and foreign competition and by the efficiency of the firm.

Keywords: firm in transition economy; production functions; efficiency (search for similar items in EconPapers)
JEL-codes: C23 D21 D24 (search for similar items in EconPapers)
Date: 2000
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Working Paper: Efficiency and Market Share in Hungarian Corporate Sector (2000)
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