Competition and Industry Performance: A Panel VAR Analysis in Indian Manufacturing Sector

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

“…The studies observing manufacturing industries of India indicate not only positive or insignificant but also a negative relationship between the variables, depending on the methodology used and the observed period. For instance, Bhandari (2010) found a positive relationship between market concentration and profitability using static panel methodology, whereas Mishra (2008) and Mukhopadhyay and Chakraborty (2017) used dynamic panel data methodology, and found insignificant and negative relationship, respectively. Positive relationship was also found in manufacturing industries of Indonesia (Setiawan and Efendi, 2016).…”

“…Besides, the advantage of this indicator is the increased precision. Therefore, we opted for using a cumulative indicator, namely Herfindahl Hirschman index, which is an operationalization of market concentration suggested by the model of Cowling and Waterson (1976), and was recently used by Mukhopadhyay and Chakraborty (2017), Keil (2018) and Škuflić et al (2018).…”

“…In empirical literature, this variable is often decomposed into advertising intensity and research and development intensity (Mishra, 2008;Bhandari, 2010;Keil, 2017), which is the approach we adopt in this research. The advertising intensity (ADV) was measured as a ratio of advertising, distribution and related costs to sales, following the approach of Bhandari (2010) and Mukhopadhyay and Chakraborty (2017). Research and development intensity (R&D) was measured as the ratio of total value of concessions, patents, trademarks, software and other proprietary right on one side, and total assets value on the other side.…”

Assessing the Competitiveness of Firms in the Indian Manufacturing Sector: An Inter Industry Analysis

“…Some recent literature on firm competitiveness in case of India is also measured competitiveness through productivity, profitability, real wage, unit labor cost, firm performances, and firm's export activities (Kathuria, 2013;Mitra et al, 2014, Sharma andMishra, 2015;Bhattacharya and Narayan, 2015;Mukhopadhyay and Chakraborty, 2017;Sharma, 2018;Opoku et al, 2018;Kim, 2019;Chakradhar and Bairwa, 2020). Kathuria (2013) compares the comparative advantage of India and Bangladesh's clothing manufacturing sectors and explains that India has a comparative advantage over Bangladesh in many clothing products, but it has not been able to increase its share at a faster rate in the world clothing trade.…”