This paper is motivated by the growing empirical evidence suggesting large firm dynamism in all market oriented economies and the significant role that this dynamism plays in promoting reallocation of resources and ultimately productivity growth. It attempts to make two major contributions:...

Using data from the Tunisian private manufacturing sector, a theory-consistent model of the investment behavior is estimated. In this model, investment is entirely profit-driven where the profit variable is decomposed into three components: the markup rate on variable costs, the capacity...

Two approaches have been taken to examine the effect of increased import competition on mark-ups in industries. In one approach, the gross price-average cost margins, defined as the ratio of sales net of expenditure on labor and intermediate inputs over sales is used as an indicator of the...