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A note on the estimation of competition-productivity nexus: a panel quantile approach

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  • Michael L. Polemis

    (University of Piraeus
    Hellenic Competition Commission)

Abstract

We study the impact of product market competition on total factor productivity in 462 US manufacturing sectors for the period 1958–2009 through the lens of a panel quantile regression analysis. We confirm that there is a nonmonotonic inverse-U relationship between competition and productivity. We argue that the turning point increases substantially as we move to the higher quantiles of the productivity distribution function. Our findings survive robustness checks under alternative competition measure and panel quantile estimator.

Suggested Citation

  • Michael L. Polemis, 2020. "A note on the estimation of competition-productivity nexus: a panel quantile approach," Economia e Politica Industriale: Journal of Industrial and Business Economics, Springer;Associazione Amici di Economia e Politica Industriale, vol. 47(4), pages 663-676, December.
    • Handle: RePEc:spr:epolin:v:47:y:2020:i:4:d:10.1007_s40812-020-00155-w
    DOI: 10.1007/s40812-020-00155-w
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    Cited by:

    1. Michael L. Polemis & Thanasis Stengos & Nickolaos G. Tzeremes, 2020. "Modeling the effect of competition on US manufacturing sectors’ efficiency: an order-m frontier analysis," Journal of Productivity Analysis, Springer, vol. 54(1), pages 27-41, August.
    2. Tselika, Kyriaki, 2022. "The impact of variable renewables on the distribution of hourly electricity prices and their variability: A panel approach," Energy Economics, Elsevier, vol. 113(C).
    3. Michael L. Polemis & Mike G. Tsionas, 2023. "The environmental consequences of blockchain technology: A Bayesian quantile cointegration analysis for Bitcoin," International Journal of Finance & Economics, John Wiley & Sons, Ltd., vol. 28(2), pages 1602-1621, April.
    4. Inuwa, Nasiru & Adamu, Sagir & Hamza, Yusuf & Sani, Mohammed Bello, 2023. "Does dichotomy between resource dependence and resource abundance matters for resource curse hypothesis? New evidence from quantiles via moments," Resources Policy, Elsevier, vol. 81(C).
    5. Ryota Nakatani, 2024. "Multifactor productivity growth enhancers across industries and countries: firm-level evidence," Eurasian Business Review, Springer;Eurasia Business and Economics Society, vol. 14(2), pages 401-446, June.

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    More about this item

    Keywords

    Quantile regression; Competition; Nonlinearities; Manufacturing; US;
    All these keywords.

    JEL classification:

    • L11 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Production, Pricing, and Market Structure; Size Distribution of Firms
    • C23 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Models with Panel Data; Spatio-temporal Models
    • C21 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Cross-Sectional Models; Spatial Models; Treatment Effect Models

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