FIRM STRUCTURE, MARKET STRUCTURE AND PROFITABILITY IN MANUFACTURING

摘要

This paper estimates a five-equation model of the Canadian manufacturing sector, in which profitability, market share, industry concentration, firm share and firm concentration are the five outcome variables. The study uses a specially constructed data set of 402 manufacturing lines of business and 595 non-manufacturing lines of business. The study applies non-linear two-stage least squares, which is a theoretically appropriate method of estimation for systems which are non-linear in the independent variables.