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Does Competition Improve Performance? Evidence from the Czech Manufacturing Industries

Andrei Medvedev and Alena Zemplinerova

Prague Economic Papers, 2005, vol. 2005, issue 4, 317-330

Abstract: The paper investigates both the impact of domestic and import competition on performance of manufacturing industries in the Czech Republic in 1998 - 2002. Using panel data we found a strong increasing non-linear (diminishing) relationship between performance of manufacturing industries and domestic competition measured by the Herfindahl-Hirschman Index. Import competition measured by an import penetration ratio is negatively related to performance of Czech industries, while foreign direct investments are positively correlated with performance.

Keywords: competitiveness; competition; transition; Czech Republic; growth; concentration (search for similar items in EconPapers)
JEL-codes: D24 L60 P23 (search for similar items in EconPapers)
Date: 2005
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Citations: View citations in EconPapers (7)

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DOI: 10.18267/j.pep.268

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