CONCENTRATION OF TOBACCO MARKET: EVIDENCE FROM SERBIA

Authors

  • Bojana Vukovi?, PhD Faculty of Economics Subotica, Subotica
  • Kristina Miji?, PhD Faculty of Economics Subotica, Subotica
  • Nataša Spahi?, PhD Faculty of Sciences, Novi Sad

DOI:

https://doi.org/10.5937/ekoPolj1502385V

Keywords:

production of tobacco, market concentration, Serbia

Abstract

This paper presents a research on market concentration of tobacco producers in the Republic of Serbia during 2010-2013. Market concentration was measured by Herfndahl Hirschman index (HHI) and Concentration index (CRn) based on independent variables: operating revenue, net earnings, equity and number of employees. The research of market concentration of tobacco producers based on operating revenue as the most referential variable indicated that the market of tobacco producers in the Republic of Serbia was highly concentrated and that it was an oligopoly. Leading companies dominated in the terms of the value of realized net earnings, equity and number of employees. Although leading companies had dominance in market share of Serbia, they had worse operating results in terms of effectiveness, structure of assets and fnancial performance in observed period.

Downloads

Download data is not yet available.

References

1. Brezina, I., Pekar, J., Čičkova, Z. (2012): The Analysis of Concentration of Slovak Banking Sector, Proceedings of the Conference Strategic Management – Strategic Management and Overcoming the Economic and Financial Crisis, Subotica, Serbia, pp. 1-8.
2. Chenqing, S., Jialong, X., Xiaqxuan, Y. (2013): On the Study of Structure Optimization of Tobacco Industry in China, Proceedings of International Conference on Industrial Engineering and Management Science, DEStech Publications, Shanghai, China, pp. 667-674, available at: http://books.google.rs/books?id=ZTnFAQAAQBAJ&pg=PA667&lpg=PA667&dq=On+the+Study+of+Structure+Optimization+of+Tobacco+Industry+in+China&source=bl&ots=qw4PEIJ3cL&sig=aGv4JYK_8TGT0NEranuvfCvAtAA&hl=sr&sa=X&ei=oUBNVKTTLKXnygOzo4DoBA&ved=0CCUQ6AEwAA#v=onepage&q=On%20the%20Study%20of%20Structure%20Optimization%20of%20Tobacco%20Industry%20in%20China&f=false
3. Djolov, G. (2013): The Herfndahl-Hirschman Index as a Decision Guide to Business Concentration: A Statistical Exploration, Journal of Economic & Social Measurement, pp. 201-227, Amsterdam, Netherlands, available at: http://iospress.metapress.com/content/d753vm64lw242686
4. European Commission. (2004): Guidelines on the Assessment of Horizontal Mergers, Offcial Journal of European Union, pp. 5-18, Brussels, Belgium, available at: http://eurlex.europa.eu/legal-content/EN/TXT/PDF/?uri=CELEX:52004XC0205%2802%29&from=EN
5. Kahyarara, G. (2011): Market Competition and Performance of Tanzanian Manufacturing, Proceedings of CSAE 25th Anniversary Conference 2011 – Economic Development in Africa CSAE, Oxford, United Kingdom, pp. 1-24, available at: www. csae.ox.ac.uk/conferences/2011-edia/papers/488-Kahyarara.pdf
6. Kanyenga, M., Mangisoni, J. H. (2006): Assessing Market Concentration in the Tobacco Industry of Malawi, University of Malawi, Lilongwe, Malawi, available at: http://community.eldis.org/.59ee3fb9/Assessing%20market%20concentration%20in%20the%20tobacco%20industry%20of%20malawi.pdf
7. Mariniello, M., Antonielli, M. (2014): Antitrust Risk in EU Manufacturing: A SectorLevel Ranking, Bruegel Working Paper 7/2014, European Commission, Brussels, Belgium, available at: www.bruegel.org/publications/publication-detail/publication/836-antitrust-risk-in-eu-manufacturing-a-sector-level-ranking/
8. Marinković, M. (2012): Nivo koncentracije u bankarskom sektoru Srbije, Makroekonomske analize i trendovi, no. 217, pp. 39-41, Ekonomski institut, Beograd, Srbija.
9. Market Network (2014): Tržište cigareta u Srbiji, Bnetwork, Belgrade, Serbia, retrieved at: 15.08.2014, available at: http://marketnetwork.rs/retail/analiza/2064-trziste-cigaretau-srbiji
10.Mijić, K., Vuković, B., Jakšić, D. (2014): Koncentracija tržišta revizijskih usluga u Republici Srbiji, Ekonomske teme, vol. 52, no. 1, pp.117-130, Ekonomski fakultet, Niš, Srbija.
11. Milačić, S., Đukić, T., Pavlović, M. (2013): Analiza tokova gotovine preduzeća duvanske industrije u Republici Srbiji, Ekonomski pogledi, no. 3, pp. 1-20, Ekonomski fakultet, Kosovska Mitrovica, Srbija.
12.Ministry of Finance (2014): Arhiva-Analize i izveštaji, MoF, Belgrade, Serbia, retrieved at: 10.08.2014, available at: http://duvan.gov.rs/arhiva/analize
13.Mirza, A. B. (2014): Market Concentration in Manufacturing, Financial and Service Sectors in Pakistan, Pakistan Business Review, vol. 5, no. 4, pp. 563-578, Institute of Business Management, Karachi, Pakistan, available at: www.iobm.edu.pk/PBR/PBR_1401_V15N4/PBR_V15N4.pdf
14.Njegomir, V., Stojic, D. (2010): Determinants of Insurance Market Attractiveness for Foreign Investments: The Case of Ex-Yugoslavia, Economic Research, no. 23, pp. 99- 110, Faculty of Economics, Pula, Croatia.
15.Organisation for Economic Co-operation and Development (OECD), (1993): Glossary of Industrial Organization Economics and Competition Law, OECD, Brussels, Belgium, available at: www.oecd.org/regreform/sectors/2376087.pdf
16.Palepu, K., Healy, P., Bernard, V. (2012): Business Analysis & Valuation-Using Financial Statements, Cengage Learning, London, United Kingdom.
17.Serbian Business Registers Agency (SBRA), (2014): Registar fnansijskih izveštaja, Belgrade, Serbia, retrieved at: 11.08.2014, available at: www.apr.gov.rs
18.Statistical Offce of Republic of Serbia (SORS), (2014): Klasifkacija, Belgrade, Serbia, retrieved at: 10.08.2014, available at: webrzs.stat.gov.rs/WebSite/userFiles/fle/.../Klasifkacija.pdf
19.U.S Department of Justice and the Federal Trade Commission (1998): Multinationalmonitor, Department of Justice and the Federal Trade Commission, Washington, United States, available at: www.multinationalmonitor.org/mm1998/111998/taub.html
20.U.S. Department of Justice and the Federal Trade Commission (2010): Horizontal Merger Guidelines, United States: Department of Justice and the Federal Trade Commission, Washington, US.

Downloads

Published

2015-06-30

How to Cite

Vuković, B., Mijić, K., & Spahić, N. (2015). CONCENTRATION OF TOBACCO MARKET: EVIDENCE FROM SERBIA. Ekonomika Poljoprivrede, 62(2), 385–398. https://doi.org/10.5937/ekoPolj1502385V

Issue

Section

Original scientific papers

Most read articles by the same author(s)