Market structure and performance of US multinationals in Brazil and Mexico |
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| Authors: | John M. Connor Willard F. Mueller |
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| Affiliation: | 1. Economist with Economic Research Service ,;2. Vilas Research Professor of Agricultural Economics, Professor of Economics , University of Wisconsin , Madison;3. Professor in the Law School , The University of Wisconsin , Madison |
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| Abstract: | This paper presents the results of a regression analysis of the market structure determinants of profitability among the Brazilian and Mexican manufacturing affiliates of US multinational corporations. The study employs data on 206 firms derived from a special survey specifically designed to obtain detailed information on their market structure environments and performance characteristics. Our estimates confirm that seller concentration, product differentiation, and relative market share are three sources of market power of these firms. Despite the many economic and noneconomic differences between Brazil and Mexico, there are no systematic differences between the two in their underlying structure‐performance relationships. |
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