How Intensive Is Competition in the Emerging Markets? An Analysis of Corporate Rates of Return from Nine Emerging Markets

Ajit Singh, Rudolph Matthias and Jack Glen

No 1999/032, IMF Working Papers from International Monetary Fund

Abstract: This large empirical study of corporate profitability in emerging markets during the 1980s and 1990s measures the intensity of competition. Data on corporate rates of return, profit margins, and output-capital ratios reveal that the recent liberalization has been associated with reduced corporate profit margins and improved capital utilization efficiency. The paper also analyzes persistency in corporate profitability and finds that competitiveness was no less intense in developing countries than in advanced countries. Although the paper is not directly concerned with the Asian crisis, it provides evidence on important structural hypotheses about the crisis.

Keywords: WP; liberalization firm; firm's earnings; developing country; market share; Corporate Rates of Return; Intensity of Competition; Emerging Markets; Peruvian cement company; time series; textile company; ith firm; regression coefficient; return on assets; Competition; Capital adequacy requirements; Emerging and frontier financial markets; Business enterprises; Manufacturing; East Asia (search for similar items in EconPapers)
Pages: 44
Date: 1999-03-01
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Citations: View citations in EconPapers (3)

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