Globalisation and the convergence of profitability

Crawford School of Public Policy
Photo by Loghi on Flickr

Event details

ACDE Seminar

Date & time

Tuesday 30 March 2021


Weston Theatre , Crawford School of Public Policy, No 132, Lennox Crossing, The ANU


Yixiao Zhou, Australian National University

Globalisation is changing the pattern of competition within and across countries, with concentration and profitability rising in most countries. We examine the pattern of changes in average profitability over the 30 years from 1989 to 2018 and relate these changes to the changing dispersion of firm profitability both within and across countries. In regression analysis we find strong evidence of convergence of the average profitability of firms within individual countries towards the global mean for their industrial sector, although evidence suggests that the rate of convergence slowed in the second half of the sample period.

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