Profit rate dynamics in US manufacturing

Joffe, Michael

doi:10.1080/02692171.2022.2154917

Cited by 4 publications

(1 citation statement)

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“…The findings thus highlight the importance of the firm-and location-specific determinants of profitability (and profitability disparities) in line with the resource-based and evolutionary economics (as opposed to the structure-conduct-performance) conceptualization of industry dynamics. Policywise, this view of competitive dynamics and this paper's findings likely suggest the persistence of profit differentials in the long run, the limited effect of macroeconomic shocks on profits, and a possible ineffectiveness of anti-trust policies and attempts to bring profits to a 'standard rate of return' given the fact that macroeconomic profits are principally a result of the unique and heterogeneous managerial capacity and resource combinations at the firm level (Joffe, 2022). The local and regional innovation policy may nonetheless play its role.…”

Section: Discussionmentioning

confidence: 71%

Profit rate convergence in the European economic area: A panel data analysis

Trofimov

2024

Ekon horizonti

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This paper examines profitability disparities across the European economies using the aggregate and sectoral data for the period from 1995 to 2019 and applying a combination of panel unit root tests and the club convergence procedure. For most of the sectors, no convergence was identified at the aggregate level. Convergence within the clubs to multiple equilibrium levels, however, was identified. This convergence pattern was the most typical in the knowledge-intensive service sectors. The exogenous shocks had temporary effects on the economies' profit rates (thus contributing to convergence), whereas the country and sector-specific profitability components were characterized by stochastic behavior (attesting to nonconvergence). Overall, the persistence of profitability disparities was demonstrated. The findings suggest the importance of the firm-specific and local profitability drivers and the limited effects of the macroeconomic and competition policies on profit rates.

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Section: Discussionmentioning

confidence: 71%