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Examining the Role of Market Concentration in Enhancing Total Factor Productivity: A Comparative Analysis of Selected Agri-based and Hi-Technology Sectors

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  • Puneet Prakash Kaur

    (Thapar Institute of Engineering and Technology)

  • Ravi Kiran

    (Thapar Institute of Engineering and Technology)

Abstract

This present research is an effort to link market concentration with market performance measured through total factor productivity (TFP). Using regression analysis for a cross-section of industries in India, we determine the market concentration in selected agri-based and hi-tech sectors and analyse its effect on TFP. Earlier international literature on a linkage between market structure and market performance has mixed results. Some researchers support that high market concentration results in high productivity, while other researchers provide evidence that the above relation is not true. To examine this in detail, this paper investigates the impact of market concentration on TFP, and then makes a comparative analysis of selected agri-based (food products #10: and tobacco and tobacco products #12) and hi-tech sectors (motor vehicles, trailers and semi-trailers #29; chemicals & chemical products #20); in India, with the data covering the period 2006–2017. The results shed light on heterogeneities in the role of concentration on TFP.

Suggested Citation

  • Puneet Prakash Kaur & Ravi Kiran, 2024. "Examining the Role of Market Concentration in Enhancing Total Factor Productivity: A Comparative Analysis of Selected Agri-based and Hi-Technology Sectors," Journal of the Knowledge Economy, Springer;Portland International Center for Management of Engineering and Technology (PICMET), vol. 15(1), pages 2525-2548, March.
    • Handle: RePEc:spr:jknowl:v:15:y:2024:i:1:d:10.1007_s13132-023-01218-8
    DOI: 10.1007/s13132-023-01218-8
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    More about this item

    Keywords

    Concentration; Total factor productivity (TFP); Manufacturing sector; Market concentration;
    All these keywords.

    JEL classification:

    • D24 - Microeconomics - - Production and Organizations - - - Production; Cost; Capital; Capital, Total Factor, and Multifactor Productivity; Capacity
    • L10 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - General
    • O47 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - Empirical Studies of Economic Growth; Aggregate Productivity; Cross-Country Output Convergence

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