Corporate Profitability and the Dynamics of Competition in Emerging Markets: A Time Series Analysis

20 Pages Posted: 11 Nov 2003

See all articles by Jack D. Glen

Jack D. Glen

International Finance Corporation (IFC)

Kevin Lee

University of Leicester - Department of Economics

Ajit Singh

United Nations; University of Cambridge

Abstract

The paper presents time-series analyses of corporate profitability in seven leading developing countries (DCs) using the common methodology of the persistence of profitability (PP) studies and systematically compares the results with those for advanced countries (ACs). Surprisingly, both short and long-term persistence of profitability for DCs are found to be lower than those for ACs. The paper concentrates on economic explanations for these findings. It also reports the results on the persistence of the two components of profitability - output-capital ratios and profit margins. These too raise important general issues of economic interpretation for PP studies which are outlined.

Suggested Citation

Glen, Jack Dean and Lee, Kevin C. and Singh, Ajit, Corporate Profitability and the Dynamics of Competition in Emerging Markets: A Time Series Analysis. Economic Journal, Vol. 113, pp. F465-F484, November 2003. Available at SSRN: https://ssrn.com/abstract=465543

Jack Dean Glen (Contact Author)

International Finance Corporation (IFC) ( email )

2121 Pennsylvania Avenue, NW
Washington, DC 20433
United States
202-473-8641 (Phone)

Kevin C. Lee

University of Leicester - Department of Economics ( email )

Department of Economics
Leicester LE1 7RH, Leicestershire LE1 7RH
United Kingdom
0116 252 5348 (Phone)

Ajit Singh

United Nations ( email )

New York, NY 10017
United States

University of Cambridge ( email )

Austin Robinson Building
Sidgwick Avenue
Cambridge, CB3 9DD
United Kingdom
+ 44 1223 350434 (Phone)
+ 44 1223 740479 (Fax)

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