Does Market Structure Matter? New Evidence from Russia

Annette Brown and J David Brown
Authors registered in the RePEc Author Service: J. David Brown

No 1946, CEPR Discussion Papers from Centre for Economic Policy Research

Abstract: In this paper we re-examine empirically the Structure-Conduct-Performance relationship between concentration and profitability using new data on Russia that allow us to overcome the endogeneity problem of market structure and expand on the traditional analysis in several ways. The analysis yields several important results. We find strong evidence that national concentration does increase profitability, but only in geographically dispersed industries, suggesting that regional markets are an important source of market power for oligopolistic industries. We find preliminary evidence that the effects of market structure are persistent in the long run. And we find for Russia that capital intensity is negatively related to profitability, suggesting that capital-intensive industries face higher adjustment costs and thus are less profitable after recessionary shocks.

Keywords: Competition; Concentration; Market Structure; structure conduct performance; Transition (search for similar items in EconPapers)
JEL-codes: L1 P2 (search for similar items in EconPapers)
Date: 1998-08
References: Add references at CitEc
Citations: View citations in EconPapers (9)

Downloads: (external link)
http://www.cepr.org/active/publications/discussion_papers/dp.php?dpno=1946 (application/pdf)

Related works:
Working Paper: Does Market Structure Matter?: New Evidence From Russia (1998)
Working Paper: Does Market Structure Matter? New Evidence from Russia (1998)
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:cpr:ceprdp:1946

Ordering information: This working paper can be ordered from
http://www.cepr.org/ ... ers/dp.php?dpno=1946

Access Statistics for this paper

More papers in CEPR Discussion Papers from Centre for Economic Policy Research 33 Great Sutton Street, London EC1V 0DX, UK.
Bibliographic data for series maintained by CEPR ().