How Intensive Is Competition in the Emerging Markets? An Analysis of Corporate Rates of Return from Nine Emerging Markets
March 1, 1999
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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
Pages:
44
Volume:
1999
DOI:
Issue:
032
Series:
Working Paper No. 1999/032
Stock No:
WPIEA0321999
ISBN:
9781451845099
ISSN:
1018-5941
