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How competitive are the emerging markets? an analysis of corporate rates of return from nine emerging markets

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  • Glen, Jack
  • Singh, Ajit
  • Mathias, Rudolph

Abstract

This paper reports on a large empirical study of corporate rates of return in emerging markets during the 1980's and 1990's. It focuses on the nature and intensity of competition and how it should be measured. The data on corporate rates of return, profit margins and output:capital ratios are used to examine the question whether liberalization and globalization in the 1990's have led to greater competition than before. Persistency in corporate rates of return is analyzed to address issues of the dynamics of the competitive process in these economies. The sample frame consists normally of the 100 largest corporations quoted on the stock markets of the following countries: Argentina, India, Jordan, Korea, Malaysia, Mexico, Peru, Thailand, Zimbabwe. The results are compared with those for advanced countries. Although the paper does not directly address the question of the present crisis in East Asian countries, it inter alia provides evidence on some of the structural hypotheses about the deeper causes of the crisis.

Suggested Citation

  • Glen, Jack & Singh, Ajit & Mathias, Rudolph, 1998. "How competitive are the emerging markets? an analysis of corporate rates of return from nine emerging markets," MPRA Paper 54931, University Library of Munich, Germany.
    • Handle: RePEc:pra:mprapa:54931
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    File URL: https://mpra.ub.uni-muenchen.de/54931/1/MPRA_paper_54931.pdf
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    References listed on IDEAS

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    Cited by:

    1. Claessens, Stijn & Djankov, Simeon & Lang, Larry, 1998. "Corporate growth, financing, and risks in the decade before East Asia's financial crisis," Policy Research Working Paper Series 2017, The World Bank.

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    More about this item

    Keywords

    Corporate Rates of Return; Intensity of Competition; Emerging Markets;
    All these keywords.

    JEL classification:

    • G3 - Financial Economics - - Corporate Finance and Governance
    • L1 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance
    • O1 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development

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