Influence of Import Competition and Seller Concentration on the Profitability of the Philippine Manufacturing Sector

Abstract

This paper attempts to use the interaction between the international and domestic variables in the determination of industry profitability. It uses a cross-section study of 29 three-digit level PSIC industries in the Philippines for 1988. Results show that concentration, capital intensity and export opportunities are positively related to industry profitability while import competition and interactive term (which integrates concentration and import competition) show significant negative influence on profitability.