Abstract

http://ssrn.com/abstract=1869191
 


 



Market Concentration Measures and Investment Decisions in Mexican Manufacturing Firms


Antonio Ruiz Porras


Universidad de Guadalajara - Centro Universitario de Ciencias Económico Administrativas (CUCEA)

Celina López-Mateo


Universidad de Guadalajara

2010

Accounting & Taxation, Vol. 2, No. 1, pp. 59-69, 2010

Abstract:     
We study how different measures of market concentration explain investment decisions of Mexican manufacturing firms. The Herfindahl-Hirschman Index is the traditional measure of market structure concentration. The Dominance Index is a competition measure used by Mexican regulators. The econometric assessments suggest that investment decisions of Mexican firms can be better explained by the Dominance Index than by the Herfindahl-Hirschman Index. Thus our results suggest that the Mexican Dominance Index might be useful as a measure of market structure and competition. The results also suggest that market concentration reduces investment. These conclusions are based on several econometric assessments.

Number of Pages in PDF File: 11

Keywords: Dominance Index, Herfindahl-Hirschman Index, Investment, Mexico, Manufacturing

JEL Classification: L40, L22, L60

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Date posted: June 30, 2011  

Suggested Citation

Ruiz Porras, Antonio and López-Mateo, Celina, Market Concentration Measures and Investment Decisions in Mexican Manufacturing Firms (2010). Accounting & Taxation, Vol. 2, No. 1, pp. 59-69, 2010. Available at SSRN: http://ssrn.com/abstract=1869191

Contact Information

Antonio Ruiz-Porras (Contact Author)
Universidad de Guadalajara - Centro Universitario de Ciencias Económico Administrativas (CUCEA) ( email )
Periférico Norte N° 799
Zapopan, 45100
Mexico
Celina López-Mateo
Universidad de Guadalajara ( email )
Guadalajara
8585
Guadalajara, Tlaquepaque 45604
Mexico
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