Competitiveness of the Oil Market and Profitability of the Oil Industry in Federation of Bosnia and Herzegovina

Abstract

This research examines different hypotheses that explain generic profitability within the framework of the hypothesis of efficiency, representing its main contribution to the use of direct measurement of efficiency through profitability and market competition. This measurement is achieved using pioneering techniques using a model in the scientific work Profitability, market structure and efficiency by M. Gumbau and J. Maudos (2000). Evidence obtained enables us not to reject the hypothesis about the profitability of oil producers in B&H, to determine whether the concentration positively affects profitability, and further, the results in most cases, enabled us to reject a clean hypothesis of efficiency since, although efficiency contributes positively to explaining the differences in profitability, the market share, which encompasses the effect of market power, also has a positive impact on it. So, from results obtained we do not reject the hypothesis of profitability so that we find positive relationship between profitability and the market share of Oil industry in Federation of Bosnia and Herzegovina.

Assessing The Effects of Structure and Conduct on The Performance of Fried Onion SMEs

“…The more companies enter the market; the more profits will decrease because more people will enjoy these benefits. The results of this study are not in line with the research of Mujic et al, (2019), which shows that capital intensity has a positive and significant effect on Price Cost Margin (PCM). The market structure formed in the Fried Onion Industry in Kuningan Regency is a monopolistic competition structure.…”

“…Several things can influence PCM; industrial performance can be affected by industry structure and industry behavior in the SCP paradigm. Many previous studies that analyzed the industry using the SCP approach have been carried out, including Arini & Sugiyanto, (2013), Septiani & Alexandi, (2014), Lee & Yang, (2016), Permana & Hariyanti, (2016), Li et al, (2017), Kumar, (2019, Bin et al, (2019), andMujic et al, (2019).…”

“…In the research of Mujic et al, (2019), it is stated that the capital intensity variable as barriers to entry as an indicator of the industrial market structure has proven to have a positive and significant effect on the Price Cost Margin (PCM) variable as an indicator of industrial performance. Arini & Sugiyanto, (2013), in their research, stated that the Capital Labor Ratio (CLR) and Advertising (Dadv) variables as indicators of industrial behavior had a positive and significant effect on the Price Cost Margin (PCM) variable as an indicator of industrial performance.…”