Prague Economic Papers 2005, 14(4):317-330 | DOI: 10.18267/j.pep.268

Does Competition Improve Performance? Evidence from the Czech Manufacturing Industries

Andrei Medvedev, Alena Zemplinerová
CERGE-NHÚ AV ČR, Politických vězňů 7, CZ 111 21 - Prague 1 (e-mail: andrei.medvedev@cergeei.cz; alena.zemplinerova@cerge-ei.cz).

The paper investigates both the impact of domestic and import competition on performance of manufacturing industries in the Czech Republic in 1998 - 2002. Using panel data we found a strong increasing non-linear (diminishing) relationship between performance of manufacturing industries and domestic competition measured by the Herfindahl-Hirschman Index. Import competition measured by an import penetration ratio is negatively related to performance of Czech industries, while foreign direct investments are positively correlated with performance.

Keywords: competitiveness, competition, transition, Czech Republic, growth, concentration
JEL classification: D24, L60, P23

Published: January 1, 2005  Show citation

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Medvedev, A., & Zemplinerová, A. (2005). Does Competition Improve Performance? Evidence from the Czech Manufacturing Industries. Prague Economic Papers, 14(4), 317-330. doi: 10.18267/j.pep.268
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