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

By Ajit Singh, Rudolph Matthias, Jack D. Glen

March 1, 1999

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Ajit Singh, Rudolph Matthias, and Jack D. Glen How Intensive Is Competition in the Emerging Markets? An Analysis of Corporate Rates of Return from Nine Emerging Markets, (USA: International Monetary Fund, 1999) accessed January 18, 2025

Disclaimer: This Working Paper should not be reported as representing the views of the IMF.The views expressed in this Working Paper are those of the author(s) and do not necessarily represent those of the IMF or IMF policy. Working Papers describe research in progress by the author(s) and are published to elicit comments and to further debate

Summary

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.

Subject: Business enterprises, Capital adequacy requirements, Competition, Economic sectors, Emerging and frontier financial markets, Financial markets, Financial regulation and supervision, Manufacturing

Keywords: Business enterprises, Capital adequacy requirements, Competition, Corporate Rates of Return, Developing country, East Asia, Emerging and frontier financial markets, Emerging Markets, Firm's earnings, Intensity of Competition, Ith firm, Liberalization firm, Manufacturing, Market share, Peruvian cement company, Regression coefficient, Return on assets, Textile company, Time series, WP

Publication Details

Pages:

44
Volume:

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DOI:

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Issue:

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Series:

Working Paper No. 1999/032
Stock No:

WPIEA0321999
ISBN:

9781451845099
ISSN:

1018-5941

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