2020
DOI: 10.1007/s40812-020-00155-w
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A note on the estimation of competition-productivity nexus: a panel quantile approach

Abstract: We study the impact of product market competition on productivity in 462 US manufacturing sectors for the period 1958-2009 through the lens of a panel quantile regression analysis. We confirm that there is a nonmonotonic inverse-U relationship between competition and total factor productivity. We argue that the turning point increases substantially as we move to the higher quantiles of the productivity distribution function. Our findings survive robustness checks under alternative competition measure and quant… Show more

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Cited by 9 publications
(6 citation statements)
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References 38 publications
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“…Danquah et al (2014) also documented a significant relationship between TFP and trade openness. Porter and Stern (2000), Eaton and Kortum (2001) found a negative association between trade openness, TFP and rate of innovation, which relates to the trade-off between technological efficiency and technical progress as they affect TFP growth (Valdes, 1999;Helpman & Rangel, 1999;Badunenko et al, 2008;Makiela, 2009).…”
Section: Resultsmentioning
confidence: 99%
See 1 more Smart Citation
“…Danquah et al (2014) also documented a significant relationship between TFP and trade openness. Porter and Stern (2000), Eaton and Kortum (2001) found a negative association between trade openness, TFP and rate of innovation, which relates to the trade-off between technological efficiency and technical progress as they affect TFP growth (Valdes, 1999;Helpman & Rangel, 1999;Badunenko et al, 2008;Makiela, 2009).…”
Section: Resultsmentioning
confidence: 99%
“…All the results are obtained from MM-quantile regression with parameters in location and scale functions. One of the benefits of the MM-quantile estimate is that it can be applied to read non-linearity or polynomial functions in the model (Chernozhukov & Hansen, 2008;Canay, 2011;Polemis, 2019). It also allows us to estimate the model for the case of fixed effects.…”
Section: Resultsmentioning
confidence: 99%
“…Some results show that market competition negatively impacts operational performance in microfinance banking (Hossain, Galbreath, Hasan, & Randøy, 2020). Also, there is an inverted-U relationship between market competition and productivity in the manufacturing industry (Polemis, 2020).…”
Section: Resultsmentioning
confidence: 99%
“…Farklı teknikler kullanılarak yapılan çalışmaların sonuçlarında genel olarak, rekabet ve toplam faktör verimliliği arasında ters-U şeklinde bir ilişki ortaya konulmaktadır (Aghion vd., 2005;Van Reenen, 2011;Marshall ve Parra 2019). Doğrusal olmayan ters-U şeklindeki ilişki, belli bir dönün noktasının (eşik değer) ötesine geçildiğinde piyasa yoğunlaşmasının giderek artması ve bunun sonucunda rekabetin ortadan kalkarak TFP büyümesinin azalması anlamına gelmektedir (Polemis, 2020). Bu çalışmada, kullanılan rekabet göstergesi (Lerner) rekabet artışı şeklinde tanımlandığı için (1-Lerner), eşik değerin ötesine geçildiğinde yoğunlaşma azalmakta ve rekabet artmaktadır (Şayet, orijinal Lerner indeksi değerleri kullanılsaydı, eşik değerin üzeri rekabet azalışını gösterecekti).…”
Section: Sonuç Ve öNerilerunclassified