Lábaj, Martin, Morvay, Karol, Silanic, Peter, Weiss, Christoph, Yontcheva, Biliana. 2018. Market structure and competition in transition: results from a spatial analysis. Applied Economics. 50 (15), 1694-1715.
BibTeX
Abstract
The present article provides first microlevel (indirect) empirical evidence on changes in entry barriers, the determinants of firm profitability as well as the nature of competition for a transition economy. We estimate size thresholds required to support different numbers of firms for several retail and professional service industries in a large number of geographic markets in Slovakia. The 3 time periods in the analysis (1995, 2001 and 2010) characterize different stages of the transition process. Specific emphasis is given to spatial spill-over effects between local markets. Estimation results obtained from a spatial ordered probit model suggest that entry barriers have declined considerably (except for restaurants) and that the intensity of competition has increased on average. We further find that demand spill-overs and/or the effects associated with a positive correlation in unobservable explanatory variables seem to outweigh negative spill-over effects caused by competitive forces between neighbouring cities and villages. The importance of these spatial spill-over effects differs across industries.
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Status of publication | Published |
---|---|
Affiliation | WU |
Type of publication | Journal article |
Journal | Applied Economics |
Citation Index | SSCI |
WU Journalrating 2009 | A |
WU-Journal-Rating new | FIN-A, VW-D |
Language | English |
Title | Market structure and competition in transition: results from a spatial analysis |
Volume | 50 |
Number | 15 |
Year | 2018 |
Page from | 1694 |
Page to | 1715 |
Reviewed? | Y |
DOI | http://dx.doi.org/10.1080/00036846.2017.1374535 |
Open Access | Y |
Open Access Link | https://www.tandfonline.com/doi/full/10.1080/00036846.2017.1374535 |
JEL | L22, D22, M13, R11 |
Associations
- People
- Weiss, Christoph (Details)
- Yontcheva, Biliana (Details)
- External
- Lábaj, Martin (University of Economics Bratislava, Slovakia)
- Morvay, Karol (University of Economics Bratislava, Slovakia)
- Silanic, Peter (University of Economics Bratislava, Slovakia)
- Organization
- Institute for Economic Policy and Industrial Economics IN (Details)
- Research areas (ÖSTAT Classification 'Statistik Austria')
- 5323 Econometrics (Details)
- 5329 Economics of location (Details)
- 5370 Industrial economics (Details)