Quotation Lábaj, Martin, Morvay, Karol, Silanic, Peter, Weiss, Christoph, Yontcheva, Biliana. 2018. Market structure and competition in transition: results from a spatial analysis. Applied Economics. 50 (15), 1694-1715.




The present article provides first microlevel (indirect) empirical evidence on changes in entry barriers, the determinants of firm profitability as well as the nature of competition for a transition economy. We estimate size thresholds required to support different numbers of firms for several retail and professional service industries in a large number of geographic markets in Slovakia. The 3 time periods in the analysis (1995, 2001 and 2010) characterize different stages of the transition process. Specific emphasis is given to spatial spill-over effects between local markets. Estimation results obtained from a spatial ordered probit model suggest that entry barriers have declined considerably (except for restaurants) and that the intensity of competition has increased on average. We further find that demand spill-overs and/or the effects associated with a positive correlation in unobservable explanatory variables seem to outweigh negative spill-over effects caused by competitive forces between neighbouring cities and villages. The importance of these spatial spill-over effects differs across industries.


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Publication's profile

Status of publication Published
Affiliation WU
Type of publication Journal article
Journal Applied Economics
Citation Index SSCI
WU Journalrating 2009 A
WU-Journal-Rating new FIN-A, VW-D
Language English
Title Market structure and competition in transition: results from a spatial analysis
Volume 50
Number 15
Year 2018
Page from 1694
Page to 1715
Reviewed? Y
DOI http://dx.doi.org/10.1080/00036846.2017.1374535
Open Access Y
Open Access Link https://www.tandfonline.com/doi/full/10.1080/00036846.2017.1374535
JEL L22, D22, M13, R11


Weiss, Christoph (Details)
Yontcheva, Biliana (Former researcher)
Lábaj, Martin (University of Economics Bratislava, Slovakia)
Morvay, Karol (University of Economics Bratislava, Slovakia)
Silanic, Peter (University of Economics Bratislava, Slovakia)
Department of Economics (Weiss) (Details)
Research areas (ÖSTAT Classification 'Statistik Austria')
5323 Econometrics (Details)
5329 Economics of location (Details)
5370 Industrial economics (Details)
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