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Competition and Crporate Performance

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  • Nickell, S.J.

Abstract

This paper investigates the impact of competition on the productivity performance of companies. The key hypothesis is that firms which operate in a more competitive environment have a higher levels of productivity and/or higher rates of productivity growth. We summarise the theoretical foundation for this hypothesis and the empirical evidence in its favour. Both are very thin. We then present some evidence based on a panel of UK manufacturing companies which provides support for the key hypothesis.
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Suggested Citation

  • Nickell, S.J., 1993. "Competition and Crporate Performance," Economics Series Working Papers 99155, University of Oxford, Department of Economics.
    • Handle: RePEc:oxf:wpaper:99155
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    1. Benjamin E. Hermalin, 1992. "The Effects of Competition on Executive Behavior," RAND Journal of Economics, The RAND Corporation, vol. 23(3), pages 350-365, Autumn.
    2. Meyer, Margaret A & Vickers, John, 1997. "Performance Comparisons and Dynamic Incentives," Journal of Political Economy, University of Chicago Press, vol. 105(3), pages 547-581, June.
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    Keywords

    competition ; productivity;

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