Foreign Direct Investment Impact on Market Concentration in the Manufacturing Sector of Bosnia and Herzegovina

Kastratović, Radovan

doi:10.22190/fueo1802135k

Cited by 4 publications

(2 citation statements)

References 17 publications

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“…It is important to note, however, that our conclusions refer exclusively to export-related effects. The foreign direct investment could have numerous other effects which could be both positive and negative (Kastratović, 2018(Kastratović, , 2019. For instance, they might transfer outdated or inadequate technology, which does not complement the conditions of a host country.…”

Section: Discussionmentioning

confidence: 99%

The impact of foreign direct investment on host country exports: A meta‐analysis

Kastratović

2020

World Economy

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In this paper, we present a synthesis of the literature examining the impact of foreign direct investment on host country exports. We reviewed and summarised 37 theoretical papers, 27 micro‐level empirical studies and analysed 627 specifications from 117 macro‐level empirical studies. In exploring the reasons behind the variations of the reported effects in the empirical literature, we applied meta‐regression methodology. Our results indicate that the existing empirical literature generally reports a positive impact of foreign direct investment on exports, especially in developing countries. The reported effects are sensitive to research design, model specification and the context of the research. No publication bias was detected in the sampled studies. Based on our results, we provide some avenues and guidelines for future research on this topic. Our results could also have some important implications for policymakers.

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Section: Discussionmentioning

confidence: 99%

The impact of foreign direct investment on host country exports: A meta‐analysis

Kastratović

2020

World Economy

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“…Future research analyzing this topic should include a sample with a longer time dimension which would allow the investigation of a dynamic relationship between market concentration and profitability. Additionally, analysis could be expanded to include foreign direct investment, which was shown to strongly interact with market concentration in comparable settings (Kastratović, 2018). Finally, it would be interesting to conduct a research on the impact of market concentration on profitability in other sectors, such as services, and examine possible differences in results.…”

Section: Discussionmentioning

confidence: 99%

Market concentration and profitability: the empirical evidence from Serbian manufacturing industry

Kastratović¹,

Lončar²,

Milošević³

2019

Zb. rad. Ekon. fak. Rij.

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The impact of market concentration on profitability is a controversial question in industrial organization without a clear answer. The aim of the research is to investigate this prospective impact in the context of Serbian manufacturing industry. The main hypothesis of the research is that the increase in market concentration increases the profitability in the markets, due to the collusion of the dominant companies. We test this hypothesis by defining, estimating and testing the model describing the impact of structural and other control variables on market profitability by using secondary panel data for 122 markets, observed in 2015 and 2017. We obtained the data from 30 037 financial reports of the manufacturing industry companies. The model was estimated by using an error component two stage least squares estimator (EC2SLS). The results indicate a statistically significant positive impact of market concentration on profitability, empirically supporting the traditional market power hypothesis.

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FDI in Bosnia & Herzegovina

2020

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Foreign Direct Investment Impact on Market Concentration in the Manufacturing Sector of Bosnia and Herzegovina

Cited by 4 publications

References 17 publications

The impact of foreign direct investment on host country exports: A meta‐analysis

The impact of foreign direct investment on host country exports: A meta‐analysis

Market concentration and profitability: the empirical evidence from Serbian manufacturing industry

FDI in Bosnia & Herzegovina

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