Competition and Industry Performance: A Panel VAR Analysis in Indian Manufacturing Sector

Jhuma Mukhopadhyay () and Indrani Chakraborty
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Jhuma Mukhopadhyay: University of Calcutta
Indrani Chakraborty: Institute of Development Studies Kolkata

Journal of Quantitative Economics, 2017, vol. 15, issue 2, No 8, 343-366

Abstract: Abstract This study tries to investigate the relationship between competition and performance in a dynamic framework in the post liberalisation era with the help of Structure Conduct Performance paradigm. By employing panel VAR estimation procedure on 23 Indian manufacturing industries that comprise of BSE listed manufacturing firms, the study finds that Structure Conduct Performance paradigm does not always hold true in Indian manufacturing scenario in the post liberalisation period. This might be because with the introduction of competition in the market, the larger firms are still practising anticompetitive strategies to have a control over the market. The relationship between performance and conduct indicates that competition has not fully succeeded in eliminating the imperfections from the market.

Keywords: Structure-Conduct-Performance paradigm; Industry performance; Panel VAR; Competition; India (search for similar items in EconPapers)
JEL-codes: C33 L10 L50 L60 (search for similar items in EconPapers)
Date: 2017
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Citations: View citations in EconPapers (2)

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DOI: 10.1007/s40953-016-0055-2

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