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

Kastratović, Radovan; Lončar, Dragan; Milošević, Siniša

doi:10.18045/zbefri.2019.1.213

Cited by 4 publications

(5 citation statements)

References 28 publications

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“…Moreover, it was observed that a significant proportion of the market, amounting to 60% in terms of sales revenue and gross value added, is contributed by small enterprises and farms. However, Kastratović et al [30] examined 30,037 financial reports of firms operating in the manufacturing industry sector in Serbia from 2015 to 2017 and concluded that market concentration significantly and positively affects profitability. As far as the research of other countries is concerned, the most comprehensive and up-to-date research was conducted by Grullon et al [31].…”

Section: Literature Reviewmentioning

confidence: 99%

Characteristics of the Supply Chain of Tobacco and Tobacco Products: Evidence from Serbia

Tica,

Matkovski,

Đokić

et al. 2023

Agriculture

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Serbia is a significant producer of tobacco in Europe and the only country in Europe where tobacco production is growing. Due to privatization, some of the most important multinational companies are now producing tobacco products in Serbia. Bearing in mind the liberalization of the market and the harmful effect tobacco products have on health, this research tried to analyze the tobacco and tobacco products sector in Serbia. The study’s main goal was to analyze the characteristics of the tobacco and tobacco supply chain in Serbia and determine comparative advantages and levels of integration with the world market. The methodology used in this study included the index of concentration of tobacco manufacturers, followed by a panel regression analysis to determine factors that affected profitability in this industry. Also, foreign trade performances were analyzed using the indices of revealed comparative advantages and integration. The research was conducted for the period from 2013 to the last available year. The results indicate the growth of tobacco production despite the decline in the number of farms, the highly concentrated production of tobacco products, and the significant intensification of foreign trade despite modest comparative advantages.

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Section: Literature Reviewmentioning

confidence: 99%

Characteristics of the Supply Chain of Tobacco and Tobacco Products: Evidence from Serbia

Tica,

Matkovski,

Đokić

et al. 2023

Agriculture

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“…Concentration reduces the cost of collusion, and market power allows anti‐competitive behavior. Prices are not favorable to the consumer but provide higher profitability to firms (Kastratović et al., 2019). In the same vein, the Relative Market Power hypothesis advocates a positive relationship between concentration and profitability.…”

Section: Introductionmentioning

confidence: 99%

“…Industry capital intensity is generally considered a driver of profitability because firms in the most capital‐intensive industries must invest at a high level to keep their business up and running. Technological advances allow improved productivity and, therefore, profitability is positively affected (Kastratović et al., 2019). Capital intensity could also act as an entry barrier due to two main reasons.…”

Section: Introductionmentioning

confidence: 99%

“…However, some studies point out that there may be a negative relationship between capital intensity and profitability. This may be due to excessive use of capital in the mature phase of the industry or because the use of capital may not yet be profitable because the products are in the early stages of their life cycle (Kastratović et al., 2019; Pervan et al., 2019).…”

Section: Introductionmentioning

confidence: 99%

“…For a literature review see, for example, Banerjee and Savitha (2021),Kastratović et al (2019), andKeil (2017).…”

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confidence: 99%

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What are the determinants affecting cooperatives’ profitability? Evidence from Spain

Ríos

2023

Ann Public Coop Econ

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This study focuses on the analysis of the determinants of Spanish cooperatives’ profitability. We inspect several variables, whose influence on firms’ profitability has been verified by prior literature, and we assess whether these results are confirmed in cooperatives. The data span 13 years (2008–20). We approach the analysis including: (i) firm‐specific factors, (ii) industry‐specific factors, and (iii) location factors. There is a main research question: Are there significant differences in cooperatives’ profitability depending on firm‐specific, industry‐specific and/or location factors? The results emphasize that firm‐specific effects are the most important for cooperatives’ profitability. Summarizing our findings, cooperatives’ profitability is positively affected by size, liquidity, indebtedness, regional specialization in cooperatives, location economies, and lagging profitability, and negatively affected by age and presence in international markets.

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Concentration of supply on the chosen markets of Serbian electronic communications sector

Kostić¹,

Živković²

2021

EurJ Appl Econ

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The electronic communications sector is very important sector of a national economy. It provides an opportunity for facilitating business activities and it is a good area for investment. A small number of operators and a large number of users operate in most markets of the electronic communications sector. The conditions under which electronic communications services are available to users in different countries diverge, among other things, due to the degree of liberalization of individual markets in these countries. The Republic of Serbia has significantly liberalized this sector of economic activity by adjusting it according to the regulations of the European Union. However, certain entry barriers have remained, primarily related to the licenses that operators need to obtain to operate in the Serbian market. The paper aims to investigate the level of concentration in selected markets of the electronic communications sector, namely: mobile telecommunication networks and services, broadband Internet services and media content distribution. The research showed a high level of concentration measured by the Herfindahl-Hirschman index in all three markets. A further increase in concentration is expected in all analyzed markets in the short term. These research results require more attention from regulatory bodies because they increase the possibility of some form of non-competitive behaviour by undertakings.

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

Cited by 4 publications

References 28 publications

Characteristics of the Supply Chain of Tobacco and Tobacco Products: Evidence from Serbia

Characteristics of the Supply Chain of Tobacco and Tobacco Products: Evidence from Serbia

What are the determinants affecting cooperatives’ profitability? Evidence from Spain

Concentration of supply on the chosen markets of Serbian electronic communications sector

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