With the nations of the world becoming more interdependent, it is
imperative to take international influences into account in
understanding the organization of industry within a country. This
book extends the structure/conduct/performance framework of
analysis to present a fully specified simultaneous equation model
of an open economy-Canada. By estimating a system of equations of
all the major variables, the authors can identify which variables
are dependent and which are independent. They are thus able to
assess the relative importance of such factors as seller
concentration, import competition, retailing structure, advertising
expenditure, research and development spending, and technical and
allocative efficiency in shaping the organization of industry in
Canada. In addition, using both industry-level and firm-level data,
the authors develop methods for assessing the effect of structural
variables on diversification strategies and the consequences for
market performance. They also study the effects of such variables
on firms' access to capital markets. The book concludes with a
discussion of the implications of the findings for government
policy.
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