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The correlation between productivity and competition is an oft-observed but ill-understood result. Some suggest that … there is a treatment effect of competition on measured productivity, e.g. through a reduction of managerial slack. Others … argue that greater competition makes unproductive establishments exit by reallocating demand to their productive rivals …
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This paper provides causal evidence of the impact of industrial policy on firms' long-term performance and quantifies industrial policy's long-term welfare effects. Using a natural experiment and unique historical data during the Heavy and Chemical Industry (HCI) Drive in South Korea, we find...
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establish a relational contract that softens price competition to either strengthen the inefficient firm in a war of attrition …
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effects are due to increased competition for local resources …
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We present a model in which managers are risk-averse and firms compete for scarce managerial talent ("alpha"). When managers are not mobile across firms, firms provide efficient compensation, which allows for learning about managerial talent and for insurance of low-quality managers. When...
Persistent link: https://www.econbiz.de/10012459770
: competition, business environment, learning spillovers and human capital. Collectively, these drivers account for about a third of …
Persistent link: https://www.econbiz.de/10012455381