How Intensive is Competition in the Emerging Markets? An Analysis of Corporate Rates of Return from Nine Emerging Markets

44 Pages Posted: 12 Feb 2006

See all articles by Jack D. Glen

Jack D. Glen

International Finance Corporation (IFC)

Ajit Singh

United Nations; University of Cambridge

Rudolph Matthias

University of Cambridge - Faculty of Economics

Date Written: March 1999

Abstract

This large empirical study of corporate profitability in emerging markets during the 1980s and 1990s measures the intensity of competition. Data on corporate rates of return, profit margins, and output-capital ratios reveal that the recent liberalization has been associated with reduced corporate profit margins and improved capital utilization efficiency. The paper also analyzes persistency in corporate profitability and finds that competitiveness was no less intense in developing countries than in advanced countries. Although the paper is not directly concerned with the Asian crisis, it provides evidence on important structural hypotheses about the crisis.

Keywords: Corporate Rates of Return, Intensity of Competition, Emerging Markets

JEL Classification: G3, L1, O1

Suggested Citation

Glen, Jack Dean and Singh, Ajit and Matthias, Rudolph, How Intensive is Competition in the Emerging Markets? An Analysis of Corporate Rates of Return from Nine Emerging Markets (March 1999). IMF Working Paper, Vol. , pp. 1-44, 1999. Available at SSRN: https://ssrn.com/abstract=880559

Jack Dean Glen (Contact Author)

International Finance Corporation (IFC) ( email )

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

Rudolph Matthias

University of Cambridge - Faculty of Economics

Trinity Ln
Cambridge, CB2 1TN
United Kingdom

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