I provide evidence on the impact of foreign competition on firms' propensities to engage in mergers and acquisitions. Using import tariff reductions as an exogenous shock that increases foreign industry competition, I find that affected firms are more likely to make acquisitions following a tariff reduction. Cross-sectional tests show that this association is more pronounced for single segment firms, firms that innovate less, or that are more capital intensive, which suggests this association is stronger for firms which stand to gain more from an acquisition. Moreover, the positive relationship between acquisition likelihood and tariff cuts is less pronounced for financially constrained firms and during times of low capital liquidity, which implies that it is easier for firms with greater access to external capital to respond to increases in foreign competition by making acquisitions. Finally, I find that acquisitions made subsequent to tariff decreases are associated with positive wealth gains for bidder shareholders, indicating that these acquisitions are viewed favorably by market participants.

This paper investigates the role of foreign competition and regional unemployment in influencing privatization policy for domestic firms. With a general model specifying the existence of foreign competition and regional unemployment, we find a negative relationship between presence of foreign competition and state ownership of the domestic firm within the same sector. We also find a positive relationship between unemployment rate in a region and state ownership of the domestic firm in the same region. Econometric analysis for China supports the theoretical findings.

Oligopoly behaviour by domestic firms faced with foreign competition in a small open economy is examined in the context of a market for differentiated products. This paper concentrates on the responsiveness of import flows to import price in the context of trade with imperfect competition. The empirical work analyses the behaviour over time of the interaction between domestic industry prices and domestic costs as well as foreign competitors' prices. A structural model is employed for estimation purposes with consumer demand derived from a CES (constant elasticity of substitution) utility function of domestic and foreign composites of goods. Domestic firms are assumed to face Leontief production functions and maximise profit independently subject to their conjectures about the reactions of rivals. Firm behaviour is modelled using conjectural variations to identify market power, distinguishing two models of oligopoly, namely, Cournot and Bertrand conjectural variations. This leads to the econometric specification of pricing, import and budget share equations consistent with oligopolistic equilibrium. The interrelationship between the budget share equations and the price-cost margin provides encompasses either Cournot or Bertrand conjectural variations. The econometric specification is applied to each of the two digit Australian manufacturing industries using quarterly data covering the period from 1984 to 2000. Results of the industrial behaviour indicate that industries that produce consumer products are generally react to price movements The classification of industry 21 to 24 is more proximate to consumer products as compared to higher industrial numbering. The regression results for industry 25 to 28 suggest quantity reactions. This is in line with the nature of the products produce by these industries, which are heavy industrial manufacturing products. / The elasticity with respect to foreign price is distinguished between the "partial" and the "total" effect. The partial elasticity of import demand ranges from .6205 to 4.9497, while the total elasticity of import demand ranges from .6505 to 19.8132. The elasticity of demand ranges from .0191 for Wood and Paper Product manufacturing to 3.4093 for Food, Beverage and Tobacco manufacturing.

Thesis (Ph. D.)--Hong Kong Polytechnic University, 2002. / Includes bibliographical references (leaves 288-305).

Within the past two decades U.S. companies have experienced increased competition from foreign companies. In an effort to combat this competition many U.S. companies focused on quality as a solution to the problem. Researchers agree this emphasis on quality systems has changed the way many managers conduct business. Yet, no studies have identified which components of world-class quality systems, if any, contribute most to changes in performance. The purpose of this study is to empirically investigate three research questions pertaining to world-class quality systems: (1) What are the components of world-class quality systems? (2) Does a relationship exist between world-class quality system components and improved organizational performance? (3) Which world-class quality system components contribute most to changes in performance? The theoretical foundation for investigating these relationships is developed from Galbraith's (1977) information processing model of organization design. An extensive literature review resulted in the identification of seven components common to world-class quality systems: management involvement, customer involvement, employee involvement, supplier involvement, product/service design, process management, and continuous improvement. The literature suggests implementation of these components leads to changes in performance in such areas as productivity, throughput time, and quality output. A cross-sectional field study was used to gather data to answer the research questions. In this study, each component of world-class quality systems is measured as an independent variable. Change in productivity, throughput time, and quality output are measured as dependent variables. Factor analyses, correlation analyses, and hierarchical regression analyses are used to test the relationships. The target population was ISO 9000 certified companies located in the United States. The results indicated that management's involvement and employees' involvement are positively correlated with change in performance. The results also show that a positive relationship exits between the use of world-class quality system components and change in performance.

El proceso de apertura comercial experimentado por Argentina en los años 90 sometió a la industria por primera vez en mucho tiempo a la competencia externa. Este trabajo investiga en qué medida la competencia externa potencial actuó como un limitante del poder de mercado de la industria local. Utilizando modelos dinámicos para datos en panel se demostró que dicha competencia fue significativa durante el período 1995-2001. En particular, algunos de los modelos estimados sugieren que aquellas industrias menos concentradas, con menor protección arancelaria, con economías de escala más reducidas, no vinculadas directamente a la actividad agropecuaria o que producen productos menos diferenciados son las que enfrentaron una competencia potencial externa significativa. / The process of trade liberalization experienced by Argentina in the 90s subjected domestic industries to foreign competition for the first time in many years. This paper studies to what extent potential foreign competition was a limiting factor of domestic market power. Using dynamic panel data models, this paper shows that such competition was significant between 1995 and 2001. Specifically, some of the models suggest that those industries not directly linked to agricultural activities, with a low degree of concentration, with low tariff barriers, with a low degree of economies of scale and whose output has a low degree of differentiation are the ones that experienced significant potential foreign competition. / Una versión de este trabajo obtuvo el premio "Elías Salama" otorgado en las X Jornadas de Economía Monetaria e Internacional, organizadas por el Departamento de Economía de la Universidad Nacional de La Plata.

This thesis examines the role of competition and innovation for firm performance, particularly during financial crises, through empirical analysis. The thesis first reviews the literature related to competition, innovation and financial crises. It next provides context of the economic legacies the transition economies in Central Europe have shared and how these legacies meant a lack of an environment for competitive firms (to operate most efficiently) and innovation (defined as new product development). Similarities and differences between the economies of the Czech Republic and Slovakia (which have a shared history over seventy years as Czechoslovakia) during the transition period and leading up to the 2009 financial crisis are reviewed, with attention to factors affecting the competitive and innovative environment in each country. Using cross-sectional regression analysis and comparing results for Czech and Slovak firms, this thesis confirms the positive influence of innovation and competition. Two variables for competition types are used in the regression - one for foreign pressure and one for domestic pressure. Both sets of firms indicate a positive influence of foreign competitive pressure to develop new products on firm performance (which is represented by firm sales in this analysis),...