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18
Appendix: List of indicators This List of indicators is a common working tool for all EFfA countries participating in the joint EC-EFfA research project, Impact of "1992" on the Services Sectors of EC and EFfA Countries. It constitutes a formalization of the list prepared by a joint EC and EFfA working party in Feb- ruary 1992 (Appendix to Annex Ito EFfAIEc/w 2/92). A data base covering the years 1980 to 1992 has been prepared by all participating EFfA coun- tries. In the case of Switzerland, coverage unfortunately is only partial in several of the eight ser- vice industries analyzed. For access to the Swiss data base, please contact Dr. Christian Etter Head of International Services Section Federal Office for Foreign Economic Affairs CH-3003 Berne. For access to the data bases of other EFfA countries, please contact Mr. Ivar Pettersen Senior Economic Officer EFfA Secretariat 9-11, rue de Varembe CH-1211 Geneva 20.

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Appendix: List of indicators

This List of indicators is a common working tool for all EFfA countries participating in the joint EC-EFfA research project,

Impact of "1992" on the Services Sectors of EC and EFfA Countries.

It constitutes a formalization of the list prepared by a joint EC and EFfA working party in Feb­ruary 1992 (Appendix to Annex Ito EFfAIEc/w 2/92).

A data base covering the years 1980 to 1992 has been prepared by all participating EFfA coun­tries. In the case of Switzerland, coverage unfortunately is only partial in several of the eight ser­vice industries analyzed.

For access to the Swiss data base, please contact

Dr. Christian Etter Head of International Services Section Federal Office for Foreign Economic Affairs CH-3003 Berne.

For access to the data bases of other EFfA countries, please contact

Mr. Ivar Pettersen Senior Economic Officer EFfA Secretariat 9-11, rue de Varembe CH-1211 Geneva 20.

260 Appendix: List of indicators

Alphabetic key to variable labels

Number Variable Explanation, formula

in the list label of indica-

tors

A

a ... Growth factor, 1992 compared to 1980; e.g. aFA = E4 (1992) 1 E4 (1980)

ADC Capital assets of Swiss companies in the EC 25

ADR Capital assets of Swiss companies in foreign countries, without the EC 25

aE4 E4 (1992)1 E4 (1980) 14

aE5 E5 (1992)1 E5 (1980) 13

aE8 E8 (1992)1 E8 (1980) 14

aEC EC (1992)1 EC (1980) 12

aED ED (1992)/ED(1980) 12

aEFC% EFC% (1992)1 EFC% (1980) 15

aEFR% EFR% (1992)1 EFR% (1980) 15

aER N (1992)1 N (1980) 12

aES% N (1992)1 N (1980) 23

aET N (1992)1 N (1980) 12

AF%C Assets of EC-based firms 1 Assets of domestic firms 29

AF%R Assets of non-EC-based firms 1 Assets of domestic firms 29

aHD HD (1992)/ HD (1980) 18

aHE4 HE4 (1992)1 HE4 (1980) 14

aHE8 HE8 (1992)1 HE8 (1980) 14

aHS4 HS4 (1992)/HS4 (1980) 14

aHS8 HS8 (1992)1 HS8 (1980) 14

AJ Institutional factor endowment (legal and institutional framework) 35

aN N (1992)1 N (1980) 12

aRI RI (1992)1 RI (1980) 22

AS Institutional factor endowment (infrastructure) 35

aS4 S4 (1992)1 S4 (1980) 14

aS5 S5 (1992)1 S5 (1980) 13

aS8 S8 (1992)1 S8 (1980) 14

aSC SC (1992)1 SC (1980) 12

aSD SD (1992)1 SD (1980) 12

aSF% SF% (1992)1 SF% (1980) 15

aSFC% SFC% (1992)1 SFC% (1980) 15

aSFR% SFR% (1992)1 SFR% (1980) 15

aSR SR (1992)1 SR (1980) 12

Appendix: List of indicators 261

Alphabetic key to variable labels (continued)

Number Variable Explanation, formula

in the list label of indica-

tors

aSS% SS% (1992)1 SS% (1980) 23 aST ST (1992)1 ST (1980) 12

AVIIC Added Value over input costs 40/41 aX%C X%C (1992)1 X%C (1980) 24 aX%R X%R (1992)1 X%R (1980) 24

C

CD% Imports from the EC over total imports 27 cm Changes in the types of discriminating government intervention 20 CIN Changes in the types of non-discriminating government intervention 20 CR Capital ratio 47 CT Changes in technology 19

D d .... Growth factor, 1990 compared to 1980, e.g. dE4=E4 (1990) 1 E4 (1980) dE4 E4 (1990) 1 E4 (1980) 14 dE5 E5 (1990) 1 E5 (1980) 13 dE8 E8 (1990) 1 E8 (1980) 14 dEC EC (1990) 1 EC (1980) 12 dED ED (1990) 1 ED (1980) 12

dEF% EF% (1990) 1 EF% (1980) 15 dEFC% EFC% (1990) I EFC% (1980) 15 dEFR% EFR% (1990) 1 EFR% (1980) 15

dER ER (1990) 1 ER (1980) 12 dES% ES% (1990) 1 ES% (1980) 23 dET ET (1990) 1 ET (1980) 12 dHD HD (1990) 1 HD (1980) 18 dHE4 HE4 (1990) 1 HE4 (1980) 14 dHE8 HE8 (1990) 1 HE8 (1980) 14 dHS4 HS4 (1990) 1 HS4 (1980) 14 dHS8 HS8 (1990) 1 HS8 (1980) 14

DN Number of Merger & Aquisitions (M&A), only Swiss firms involved 16 dN N (1990) 1 N (1980) 12 dRI RI(1990)1 RI(1980) 22 dS4 S4 (1990) 1 S4 (1980) 14 d S5 S5 (1990) 1 S5 (1980) 13

262 Appendix: List of indicators

Alphabetic key to variable labels (continued)

Number

Variable Explanation, formula in the list

label of indica-tors

dS8 S8 (1990) / S8 (1980) 14

dSC SC (1990) / SC (1980) 12

dSD SD (1990) / SD (1980) 12

dSF% SF% (1990) / SF% (1980) 15

dSFC% SFC% (1990) / SFC% (1980) 15

dSFR% SFR% (1990) / SFR% (1980) 15

dSR SR (1990) / SR (1980) 12

dSS% SS% (1990) / SS% (1980) 23

dST ST (1990) / ST (1980) 12

DV Sum of tum overs of firms involved in Swiss mergers and aquisitions 16

DV80 DV, deflated by Consumer Price Index 16

dX%C X%C (1990) / X%C (1980) 24

dX%R X%R (1990) / X%R (1980) 24

E

E4 Employment (Switzerland) of the four leading firms 3

E5 Employment (Switzerland) of the five leading firms 2

E8 Employment (Switzerland) of the eight leading firms 3

EC Number of employees in Switzerland working for exports to the EC 1

ED Number of employees in Switzerland 1

ED%C Relative importance (DomesticlEC employment) 26

ED%R Relative importance (Domestic/non-EC employment) 26

EDC Number of employees of Swiss companies in the EC 25

EDR Number of employees of Swiss companies in foreign countries, without 25 theEC

EExp%C Relative importance (Exports to EC/Sales from EC) 26

EExp%R Relative importance (Exports to non-EC/Sales from non-EC) 26

EF Employment (Switzerland) of foreign firms 4

EF% Share of employment (Switzerland) of foreign firms 29

EFC Employment (Switzerland) of EC-based firms 4

EFC% EFCIED 29

EFR Employment (Switzerland) of foreign (without EC-based) firms 4

EFR% EFRIED 29

ER Number of employees in Switzerland working for exports to non-EC I

ES% Share of employment of state-owned enterprises 11

ET Total employment of Swiss companies 1

Appendix: List of indicators 263

Alphabetic key to variable labels (continued)

Number Variable Explanation, formula in the list

label of indica-tors

G

GDP Domestic sales less imports 28

H

HD Theil's entropy index (business activities) 5 HE4 Theil's entropy index (employment) for the four leading firms 3 HE8 Theil's entropy index (employment) for the eight leading firms 3 HO Factor intensity and abundance indicator 33 HP Theil's entropy index (product differentiation) 7

HS4 Theil's entropy index (turnover) for the four leading firms 3 HS8 Theil's entropy index (turnover) for the eight leading firms 3

I

ID Index for discriminating government interventions 9 1M Interest margin 43 IN Index for non-discriminating government interventions 9

M

M% Imports! SD 28 M%C Imports from the EC ! SD 28 M%R Imports from foreign countries without the EC ! SD 28

N

N Number of companies 1 NUSP Number of products with unique selling property 34

p

PDC International price differentials (DomesticlEC 31 PI Product innovation 20 PR Proximity requirement 8

264 Appendix: List ar indicators

Alphabetic key to variable labels (continued)

Number

Variable Explanation, formula in the list

label of indica-tors

R

R Returns to scale 6

RD% Imports from foreign countries (without the EC) over total imports 27

RI Degree of government intervention, relevance weighted 10 ROA Return on assets 36

ROE Return on equity 38

S

S4 Sales (Switzerland) of the four leading firms 3

S5 Sales (Switzerland) of the five leading firms 2

S8 Sales (Switzerland) of the eight leading firms 3

SC Sales from exports to the EC I

SCP Economies of scope 6

SD Sales generated in Switzerland I

SD%C Relative importance (SD/SDC) 26

SD%R Relative importance (SD/SDR) 26

SDC Sales of Swiss companies generated in the EC 25

SDR Sales of Swiss companies generated in foreign countries, excluding the 25 EC

SExp%C Relative importance (ExportS/Sales originating in the EC) 26

SExp%R Relative importance (Exports/Sales originating in the EC) 26

SF Market share of foreign firms SF/SD 4

SFC SFC/SD 4

SFR SFRISD 4

SFO% Relative importance (Imports / Sales of foreign firms) 30

SFO%C Relative importance (Imp C / Sales of foreign firms) 30

SFO%R Relative importance (Imp R / Sales of foreign firms) 30

SR Exports from Switzerland to non-EC countries I

SS% Market share (gross premiums) of state-owned enterprises 11

ST Total sales I

Appendix: List of indicators 265

Alphabetic key to variable labels (continued)

Number Variable Explanation, formula

in the list label of indica-

tors

T

TN Number of Merger & Aquisitions (M&A), Swiss firm dominant 17 TNC Number of Merger & Aquisitions (M&A), EC-based firm dominant 17 TNR Number of Merger & Aquisitions (M&A), foreign, non EC-based firm 17

dominant TRAD Tradeability 32

TV Sum of sales of firms involved in M&A, Swiss firm dominant 17 TVC Sum of sales of firms involved in M&A , EC-based firm dominant 17 TVR Sum of sales of firms involved in M&A, non EC-based firm dominant 17

TV80 TV, deflated by Consumer Price Index 17 TVC80 TVC, deflated by Consumer Price Index 17 TVR80 TVR, deflated by Consumer Price Index 17

U

UC Unit costs 45

V

VAV/IC Variance of AV/IC 42 VIM Variance of 1M 43

VROA Variance of ROA 37 VROE Variance of ROE 39 VUC Variance of UC 46

X

X%C Share of export to the EC in total domestic sales SC/SD 24 X%R Share of export to foreign, non EC countries, in total domestic sales 24

SRiSD

Ap

pen

dix

Tab

le 1

: In

dica

tors

of m

ark

et s

tru

ctu

re (

stat

ic a

naly

sis)

j;Xf

Ii;t

4%;;A.

:;A:ssessilieDt!otma',rketstructtire4~

!l~

Rem

arks

-'.

'-"

.'~

. ~

v ..

~

'.~"

;;

~ ~.

,..f

"y

,'",

.{ ~.

. -

1 .

..

. ,

Tur

nove

r (s

ales

) sh

ould

be

dlst

lOgu

lshe

d w

ith

resp

ect t

o:

a) t

otal

tur

nove

r ac

hiev

ed b

y th

e fi

rm,

b) t

urno

ver

achi

eved

in

the

dom

esti

c co

untr

y c)

tur

nove

r ge

nera

ted

Num

ber

of

firm

s an

d av

erag

e si

ze o

f fi

rms

from

ser

vice

s ex

port

ed to

EE

C c

ount

ries

, and

d)

turn

over

ge

nera

ted

from

ser

vice

s ex

port

ed to

the

res

t o

f th

e w

orld

1)

(m

easu

red

by s

ales

, em

ploy

men

t, a

sset

s, o

r any

(R

oW).

ot

her

appr

opri

ate

mar

ket

acti

vity

ind

icat

or).

Employmen~ s

houl

d be

dis

ting

uish

ed w

ith

resp

ect t

o: a

) to

tal e

mpl

oym

ent,

b d

omes

tic

empl

oym

ent,

c)

EE

C

empl

oym

ent,

and

d)

RoW

em

ploy

men

t.

Ave

rage

siz

e ot

the

hve

lead

mg

hn

ns

(by

sale

s,

Dat

a on

tur

nove

r an

d em

ploy

men

t fo

r th

e fi

ve l

eadi

ng

2)

empl

oym

ent,

ass

ets,

-or

any

oth

er a

ppro

pria

te

firm

s op

erat

ing

in t

he r

elev

ant

Sw

iss

serv

ice

sect

or.

indi

cato

r o

f act

ivit

y).

The

per

cent

age

ot t

otal

SW

ISS

turn

over

mad

e by

the

tou

r an

d ei

ght

lead

ing

finn

s in

the

rel

evan

t se

ctor

(an

d ca

lcu-

late

the

empl

oym

ent c

once

ntra

tion

rat

ios)

. D

egre

e o

f co

ncen

trat

ion

in t

he r

elev

ant

sect

or

3)

mea

sure

d as

the

fou

r-fi

rm a

nd e

ight

-fin

n sa

les

Use

The

il's

ent

ropy

inde

x:

(or

any

othe

r ap

prop

riat

e in

dica

tor

of a

ctiv

ity)

H =

2>

·Xlog~;

conc

entr

atio

n ra

tios

. .

I P

j I

whe

re P

i is

the

mar

ket

shar

e o

f the

ith

firm

(i =

1 to

4,

5 ;

1 to

S, 9

, w

ith

5 an

d 9

= re

mai

nder

of s

ecto

r).

Impo

rtan

ce o

t to

relg

n co

ntro

lled

hrm

s In

the

A d

isti

ncti

on s

houl

d be

mad

e be

twee

n E

EC

ow

ned

firm

s do

mes

tic

mar

ket

mea

sure

d by

the

ir d

egre

e o

f an

d no

n -E

EC

(R

oW)

owne

d fi

rms

(50%

or

mor

e o

f 4)

pr

esen

ce -

the

mar

ket

of

fore

ign

firm

s in

the

st

ock)

. U

se f

orei

gn f

irm

s' s

ales

and

em

plo

ymen

t dat

a to

do

mes

tic

mar

ket.

A d

isti

ncti

on s

houl

d be

mad

e be

twee

n E

C a

nd n

on-E

C f

irm

s.

calc

ulat

e m

arke

t sh

ares

.

Div

ersi

fica

tion

of e

cono

mic

act

ivit

y in

the

H

D =

2>·

Xlog~;

5)

. I

Pi

rele

vant

ser

vice

sec

tor.

I

whe

re P

i is

the

shar

e o

f th

e ith

act

ivit

y in

tot

al a

sset

s, c

on-

form

ing

to a

sset

pos

ition

s ac

cord

ing

to O

EC

D s

tand

ard

.

Var

iabl

e sp

ecif

icat

ion

N =

num

ber

of

firm

s;

S =

sal

es;

E =

empl

oym

ent;

C

=E

EC

; R

=R

oW

. T

= t

otal

D

= d

omes

tic

Var

iabl

e la

bels

: N

; S

T, S

D, S

C, S

R;

ET

, E

D, E

C,

ER

S5;

E5

S4

;E4

; SS

; E

S;

HS

4, H

SS;

HE

4,H

ES

.

SF

C;

SF

R;

EF

C;

EF

R.;

whe

re F

sta

nds

for

fore

ign

.

HD

~ >

"CI 1 E' ~ - ~ i- S'

;;!

App

endi

x T

able

1:

Indi

cato

rs o

f mar

ket

str

uctu

re (

stat

ic a

naly

sis,

con

tinu

ed)

6)

7)

8)

9)

Deg

ree

of s

cale

eco

nom

ies

(qua

lita

tive

judg

emen

t on

a l

ow­

med

ium

-hig

h sc

ale)

.

Deg

ree

of

scop

e ec

onom

ies

(qua

lita

tive

judg

emen

t on

a lo

med

ium

-hig

h sc

ale)

.

Deg

ree

of p

rodu

ct d

iffe

rent

iati

on

(qua

lita

tive

judg

emen

t on

a lo

med

ium

-hig

h sc

ale)

.

Typ

es o

f go

vern

men

t in

terv

enti

on p

reva

ilin

g in

the

m

arke

t: d

iscr

imin

atin

g o

r no

n -

disc

rim

inat

ing

.a)

retu

rns

to s

cale

par

amet

er,

r ,

to th

e pr

oduc

tion

fun

ctio

n at

the

out

put l

evel

0:

YoA

r =

(A

Lo'

AK

o) ;

whe

re r

= 1

impl

ies

cons

tant

ret

urns

to

scal

e, r

> 1

impl

ies

retu

rns

to s

cale

. sc

ope

pro-

duci

ng Y

I an

d Y

2 to

geth

er to

pro

duci

ng t

hem

sep

a-ra

tely

: C

(Y

, +

Y 2

) sc

=

; C

(Y,)

+C

(Y2

)

whe

re C

is

tota

l co

sts.

Use

com

bini

ng b

anki

ng a

nd i

nsur

ance

se

rvic

es a

s th

e re

fere

nce

case

. I

HP

= L

P;x

log-

-:;

; P

,

whe

re P

i is

the

cont

ribu

tion

of t

he i

th a

ctiv

ity

to to

tal

asse

ts.

(Coi

ncid

es w

ith i

tem

5 a

bove

)

I =

low, 2

= me

dium

, 3 =

high.

= g

over

nmen

t ex

ist,

0 =

doe

s no

t exi

st)

for

gove

rnm

ent

inte

rven

tion

and

de

term

ine

whe

ther

it is

GN

(no

n-di

scri

min

atin

g) o

r G

D (

dis­

<:r

imin

atin

g):

1) M

arke

t ac

cess

, 2)

Acc

ess

to f

acto

r m

arke

t, 3

) P

rodu

ct in

tro

­du

ctio

n an

d in

nova

tion

, 4)

Pri

ce s

etti

ng,

5)'T

axes

, an

d 6)

Use

o

f pr

ofits

. 6

6

IN=

I

GN

,,;

ID =

I

GD

k k

.1

k.

l

Var

iabl

e sp

ecif

icat

ion

R

SC

P

HP

PR

IN,I

D.

a) D

iscr

imin

atin

g im

plie

s th

atlh

e ru

les

of th

e go

vern

men

t app

ly o

nly

to a

segm

ent o

f the

sel

lers

. fo

r exa

m!>

le, f

orei

gn s

elle

rs, w

hile

non

-dis

crim

inat

ing

rule

s ap

ply

stri

ctly

to a

ll se

llers

in

the

mar

ket.

>

~ is. Ff ~ g, [ ~ ;;!

~ ~

App

endi

x T

able

l:I

nd

icat

ors

of m

ark

et s

truc

ture

(st

atic

ana

lysi

s, c

onti

nued

)

10)

11)

Deg

ree

of

gove

rnm

ent

inte

rven

tion

mea

sure

d b

y th

e de

gree

of r

egul

ator

y in

tens

ity

prev

aili

ng in

the

dom

esti

c m

arke

t (q

uali

tati

ve ju

dgem

ent

on a

low

-med

ium

-hig

h sc

ale)

.

Mar

ket

shar

e o

f sta

te-o

wne

d en

terp

rise

s.

Rem

arks

Cre

ate

from

the

pro

pert

ies

1 to

6 f

rom

po

siti

on (

9) a

n in

dex

wit

h w

eigh

ts (

ak, ~)

as f

ollo

ws:

ak =

1 (lo

w),

ak=

2 (

med

ium

), a

k =

3 (h

igh)

; w

here

ak

refe

rs t

o no

n-di

scri

min

a­to

ry g

over

nmen

t po

lici

es.

b k =

1 (l

ow),

bk

= 2

(m

ediu

m),

bk

= 3

(hig

h);

whe

re ~ r

efer

s to

dis

crim

inat

ory

gove

rnm

ent p

olic

ies.

Cal

cula

te i

ndex

RI:

6

Rl

= L

(akG

Nk+

bkG

Dk)

k

= 1

Var

iabl

e S

peci

fica

tion

RI

Cal

cula

te th

e pe

rcen

tage

sha

re o

f to

tal

I SS

%, E

S%

whe

re S

= go

v-tu

rnov

er f

or t

he g

over

nmen

t-ow

ned

ente

r-er

nmen

t.

pris

es (

mor

e th

an 5

0% o

f sto

ck)

~ >

"CI 1 a. Fr ~ o ... ;- a. f

App

endi

x T

able

2:

Indi

cato

rs o

f m

ark

et s

tru

ctu

re (

dyna

mic

ana

lysi

s)

","

,,'

A. A

sses

Smen

t of c

hang

es in

mar

ket s

truc

ture

" ~.:

.:;;.

-..j-

11 R

emar

ks

Com

pare

199

0 an

d 19

92 d

ata

wit

h 19

80 (

num

ber

Cha

nges

in t

he n

umbe

r of

firm

s an

d av

erag

e si

ze o

f o

f fi

rms

(N),

em

ploy

men

t (E

), a

nd f

or s

ales

(S

».

12)

firm

s (m

easu

red

by s

ales

, em

ploy

men

t, a

sset

s, o

r A

pply

the

sam

e da

ta f

rom

pos

itio

n (I

) in

Tab

le 1

. an

y ot

her

appr

opri

ate

mar

ket

acti

vity

ind

icat

or)

dS =

5(9

0)

as=

S(9

2)

duri

ng t

he 1

980'

s.

5(80

) S

(80

)

13)

Cha

nges

in

the

aver

age

size

of t

he f

ive

lead

ing

Ana

logo

us to

(12

) fi

rms

duri

ng t

he 1

980'

s,

Cha

nges

in t

he d

egre

e o

f m

arke

t con

cent

rati

on (

in

Ana

logo

us to

(1)

and

(2)

. F

or T

heil

's e

ntro

py

inde

x, f

or e

xam

ple,

cal

cula

te:

the

rele

vant

mar

ket)

, m

easu

red

as t

he c

hang

es in

14

) th

e fo

ur-f

irm

and

eig

ht.f

irm

sal

es (

or a

ny o

ther

dR

S =

HS

(90

) ap

prop

riat

e in

dica

tor

of

acti

vity

) co

ncen

trat

ion

RS

(80

) ra

tios

, du

ring

the

198

0's.

Cha

nges

in

the

impo

rtan

ce o

f fo

reig

n co

ntro

lled

A

pply

the

dat

a fr

om p

osit

ion

(4)

in T

able

1.

firm

s in

the

dom

esti

c m

arke

t, m

easu

red

by t

he

15)

degr

ee o

f pr

esen

ce o

f fo

reig

n fi

rms

(the

ir m

arke

t d

SF

C =

SF

C(9

0)

shar

e o

f th

e to

tal

dom

esti

c m

arke

t), d

urin

g th

e S

FC

(80

) 19

80's

. A

dis

tinc

tion

sho

uld

be m

ade

betw

een

EC

fi

rms

and

non-

EC

fir

ms

(RoW

).

DN

t =

num

ber

of M

&A

in y

ear

t Y

t =

com

bine

d sa

les

of

invo

l ved

fir

ms

in y

ear

t

t t

Dom

esti

c m

erge

rs a

nd a

cqui

siti

on a

ctiv

ity

(M &

D

Nt

=

I D

N,;

D

V

=

I D

V,

t 16

) A

), m

easu

red

in b

oth

num

ber

and

turn

over

, dur

ing

,.

1980

,

.]9

80

the

1980

's.

Cal

cula

te D

V80

ana

logo

usly

to

DV

, but

usi

ng

defl

ated

sal

es (

cons

umer

pri

ce i

ndex

, 19

80 =

1.0

0)

Var

iabl

e sp

ecif

icat

ion

dN

,aN

dS

, as

, d

E,a

E.

dSS,

aSS

, dE

S, a

ES

.

dS

4,a

S4

,dE

4,a

E4

dS

8, a

S8,

dE

8, a

E8

dHS

4, a

HS

4,

dHS

8, a

HS

8,

dHE

4, a

HE

4,

dHE

8, a

HE

8.

dSF

C%

, aS

FC

%,

dSF

R %

, aS

FR

%,

dEF

C%

, aE

FC

%,

dEF

R%

, aE

FR

%.

DN

, DY

, D

Y80

>

"CI ~ =

Co R· ~ So s· C

o S· S"

;;! ~ ""

App

endi

x T

able

2:

Indi

cato

rs o

f mar

ket

str

uctu

re (

dyna

mic

ana

lysi

s, c

onti

nued

)

~B,C

J1anges,

ip t

he

:det

enn

inim

ts o

f m

ark

et

Rem

arks

t1

~-.~

[t

; "

.,,-

'" >"-

;, "

j3J

y,

'slr

uctu

re <

:<t

'"

'0

.)!

'.~,'

.",

"~-

Tra

nsbo

rder

M &

A ,

mea

sure

d bo

th in

T

N t

: num

ber

of

M&

A i

f Sw

iss

firm

is

dom

inan

t;

num

ber

and

turn

over

, du

ring

the

198

0's.

T

NC

t : i

fEE

C fi

rm i

s do

min

ant;

TN

Rt

: if R

oW f

irm

17)

Dis

ting

uish

bet

wee

n M

& A

invo

lvin

g is

dom

inan

t. A

nalo

gous

to

posi

tion

(5)

cal

cula

te:T

Nt,

pure

ly E

C f

irm

s an

d th

ose

inv

olvi

ng p

urel

y T

NC

!, T

NR

t, T

Vt,

TV

C!,

TV

Rt,

as

wel

l as

TV

80,

non-

EC

fir

ms

(RoW

).

TV

C80

, TV

R80

18)

Cha

nges

in d

iver

sifi

cati

on o

f eco

nom

ic

Ana

logo

us to

pos

itio

ns (1

-3)

cal

cula

te d

HD

, and

ac

tivi

ty i

n th

e 19

80's

. aH

D.

Cha

nges

in

tech

nolo

gy d

urin

g th

e 19

80's

1 =

low, 2

= me

dium

, 3 =

high,

19

) (q

uali

tati

ve ju

dgem

ent

on a

low

-med

ium

-hi

gh s

cale

).

for

each

act

ivit

y (O

EC

D s

tand

ard)

. Cal

cula

te

arit

hmet

ic m

ean

Pro

duct

inn

ovat

ion

duri

ng t

he 1

980'

s A

nalo

gou

s to

pos

itio

n (8

), u

se q

uali

tati

ve ju

dgem

ent

20)

(qua

lita

tive

judg

emen

t on

a lo

w-m

ediu

m-

high

sca

le).

to

ind

icat

e th

e de

gree

of

prod

uct

inno

vati

on (

PI).

Intr

oduc

e th

e va

riab

le 6

GN

t . 6

GN

t =

I, w

ith

an

incr

ease

in g

over

nmen

t in

terv

enti

on,

and

= -1

with

a

Cha

nges

in t

he t

ypes

of

gove

rnm

ent

decr

ease

in g

over

nmen

t in

terv

enti

on, o

ther

wis

e =

O.

21)

inte

rven

tion

C

alcu

late

: t t

CIN

=

I 6.

GN

't

CID

=

I 6.

GD

't 't

.19

80

't .

1980

Cha

nges

in t

he d

egre

e o

f gov

ernm

ent i

nter

-U

se t

he s

ame

form

at a

ppli

ed t

o po

siti

on (

10)

in T

able

ve

ntio

n, m

easu

red

by t

he d

egre

e o

f reg

ula-

' 1.

R

I =

RI(

90)

22)

tory

int

ensi

ty (

qual

itat

ive

judg

emen

t on

a

RI(

80)

low

-med

ium

-hig

h sc

ale)

.

23)

Cha

nges

in t

he m

arke

t sha

re o

f sta

te-o

wne

d C

alcu

late

the

perc

enta

ge c

hang

e in

the

mar

ket's

hare

en

terp

rise

s du

ring

the

198

0's.

for

the

gove

rnm

ent o

wne

d en

terp

rise

.

Var

iabl

e sp

ecif

icat

ion

TN

, TN

R, T

NC

; T

V, T

VC

, , T

VR

; T

V80

, TV

C80

, T

VR

80

dH

D,a

HD

CT

PI

CIN

C

ID

dRI,

aR

I

dSS

%,a

SS

%

dSE

%,a

SE

%

~ >

"CI 1 Q, ~r

t'"

/ii' .. o ... S'

Q, ri" 0'

;;!

Ap

pen

dix

Tab

le 3

: In

dica

tors

of i

nter

nati

onal

izat

ion

i\! A$s.~sSmen\PV~nternatlOpalizatiOn',

!,/"

';

Rem

arks

Impo

rtan

ce o

f ex

port

s (m

easu

red

by

exp

ort

Dis

ting

Uis

h be

twee

n ex

port

to

EC

cou

ntne

s an

d to

24)

divi

ded

by t

otal

sal

es,

or

any

othe

r ap

prop

riat

e R

oW,

both

as

a pe

rcen

tage

of t

otal

sal

es (

S e

x do

mes

-

indi

cato

r o

f ac

tivi

ty).

ti

c co

untr

y)

, 1Jl

stln

guls

h be

twee

n eh

rect

Inv

estm

ent

In h

e a

nd

Impo

rtan

ce o

f di

rect

inv

estm

ent b

y d

omes

tic

RoW

. D

irec

t in

vest

men

t in

corp

orat

es o

wne

rshi

p an

d

25)

firm

s ab

road

(m

easu

red

by v

alue

of

asse

ts,

valu

e pa

rtic

ipat

ion

stoc

k. b

ut n

ot c

redi

t le

ndin

g. I

n th

is

of

sale

s, e

mpl

oym

ent.

or

any

othe

r ap

prop

riat

e ca

se,

"sal

es"

mea

ns s

ales

by

aff

ilia

tes

oper

atin

g in

m

easu

re).

fo

reig

n co

unt

ries

(S

ex a

broa

d).

Not

e th

at D

sta

nds

for

dom

esti

c an

d A

for

ass

ets.

R

elat

ive

Impo

rtan

ce o

t ex

port

s an

d d

Irec

t sa

les

Rel

atIv

e Im

port

ance

IS c

onst

ruct

ed a

s fo

llow

s:

(or

any

othe

r ap

prop

riat

e in

dica

tor

of a

ctiv

ity)

by

SD

% =

Sal

es e

x do

mes

tic!

sal

es e

x ab

road

26

) af

fili

ates

as

chan

nels

of

inte

rnat

iona

liza

tion

by

SE

xp%

= E

xpor

ts!

sale

s ex

abr

oad

dom

esti

c fi

ms.

A d

isti

ncti

on s

houl

d be

mad

e be

twee

n in

tra-

and

extr

a-E

C (

RoW

) tr

ansa

ctio

ns.

27)

Sha

re o

f m

embe

r st

ate'

s im

port

s fr

om t

he E

C

~erv

lces

Im

porte

c1 t

rom

hC

(R

oW)

/ T

otal

ser

vice

s

and

RoW

. im

port

ed b

y do

mes

tic

coun

try

Impo

rtan

ce o

f im

port

s(im

port

s di

vide

d by

Im

port

s di

vide

d by

app

aren

t co

nsum

ptIO

n (=

sal

es

28)

appa

rent

con

sum

ptio

n).

Dis

ting

uis

h be

twee

n E

C

orig

inat

ing

in d

omes

tic c

ount

ry, s

ee it

em (

I), T

able

1.

Fu

rthe

rmor

e, c

alcu

late

: Gro

ss D

omes

tic

Pro

duct

=

and

Ro

W i

mpo

rts.

S

ales

-im

port

s.

Deg

ree

of

pres

ence

by

fore

ign

firm

s in

the

M

arke

t sh

are

of

fore

ign

firm

s In

the

dom

esti

c m

arke

t

dom

esti

c m

arke

t (m

arke

t sh

are

of

fore

ign

firm

s is

mea

sure

d by

the

val

ue o

f as

sest

s (A

), o

r an

y ot

her

29)

in t

he

dom

esti

c m

arke

t, m

easu

red

by th

e va

lue

of

appr

opri

ate

indi

cato

r, su

ch a

s em

ploy

men

t an

d sa

les.

asse

ts,

or a

ny o

ther

app

ropr

iate

ind

icat

or o

f F

or e

xam

ple,

deg

ree

of p

rese

nce

for

sale

s:

acti

vity

). A

dis

tinc

tion

sho

uld

be m

ade

betw

een

inve

stm

ents

fro

m t

he E

C a

nd R

oW.

S fo

reig

n fi

rms!

S e

x do

mes

tic

coun

try

Rel

ativ

e Im

port

ance

of

Impo

rts

and

dire

ct s

ales

I he

rel

ativ

e Im

port

ance

ind

icat

or IS

con

stru

cted

on

by f

orei

gn a

ffil

iate

s as

cha

nnel

s o

f in

tern

atio

nal-

the

basi

s o

f po

siti

ons

(28)

and

(29

).

; 30)

iz

atio

n o

f th

e do

mes

tic

mar

ket.

Dis

ting

uish

re

lati

ve i

m

onan

ce =

im

port

s IS

ex

dom

estic

. =

Im

port

s be

twee

n E

C a

nd R

oW t

rans

acti

ons.

P

S fo

r. fi

nns

IS e

x do

mes

uc

S fo

r. fi

rms

Var

iabl

e sp

ecif

icat

ion

X%

C,X

%R

,

SD

C,

ED

C, A

DC

, S

DR

, E

DR

, A

DR

;

SD

%C

, S

D%

R

ED

%C

,ED

%R

S

Exp

%C

, S

Exp

%R

E

Exp

%C

, EE

xp%

R

CD

%,R

D%

.

M%

C, M

%R

. G

DP.

SF

%C

. S

F%

R,

EF

%C

,EF

%R

, A

F%

C,

AF

%R

.

SF

O%

C,

SF

O%

R

>

"0

~ is. ~. i e .... [ i !j ....

App

endi

x T

able

3:

Indi

cato

rs o

f int

erna

tion

aliz

atio

n (c

onti

nued

)

~··;!:B.

, D'e

t~rm

inaq

ts C

)f '"

'~Jnte~

pl!tiQnaUzati~n

Rem

arks

Inte

rnat

iona

l pr

ice

Cal

cula

te:

p,

31)

,-' ,

for e

very

pro

duct

j di

ffer

enti

als

EC

'

P j

1) R

ecip

ient

of s

ervi

ces

is n

ot a

per

son?

(Yes

= 1)

, ,2)

AIe

tran

sact

ions

D

egre

e o

f tr

adab

ilit

y in

Eng

lish

pos

sibl

e? (

Yes

::: 1

), 3)

Mos

t im

port

ant

expo

rt c

ount

ry,

32)

(qua

lita

tive

ne

ighb

orin

g co

untr

y? (

Yes

::: 1

).4)

Mos

t im

port

ant r

ecip

ient

, no

t the

ju

dgem

ent o

n a

scal

e G

over

nmen

t nor

Soc

ial S

ecur

ity?

(Yes

= 1),

5)

Sup

ply

of s

ervi

ces

lega

l, fr

om 0

to 5

).

wit

hout

phy

sica

l pr

esen

ce in

the

dom

esti

c m

arke

t? (Y

es =

1). C

alcu

late

T

RA

D a

s th

e su

m o

f dum

mie

s (m

ax =

5).

Est

abli

sh f

our

fact

or i

nten

sity

ind

icat

ors

(RD

: R

&D

, S

L :

skil

led

Deg

ree

of R

&D

, la

bor,

UL

: un

skil

led

labo

r, C

: ca

pita

l, I:

inte

nsiv

e) w

ith

valu

es a

s fo

l-

labo

r (s

kill

ed o

r lo

ws:

1 =

low, 2

= me

dium

, 3

= hig

h.

unsk

ille

d) a

nd c

apit

al

1) I

RD

; 2)

ISL

; 3)

IU

L;

4) I

e.

33)

inte

nsit

y(fo

r ea

ch

Fur

ther

mor

e, e

stab

lish

fou

r fa

ctor

abu

ndan

ce i

ndic

ator

s w

ith

valu

es a

s

fact

or,

a qu

alit

ativ

e fo

llow

s: 1

= sc

arce

, 2

= av

erag

e, 3

= ab

unda

nt.

judg

emen

t of

a lo

w-

l) A

RD

; 2)

AS

L;

3) A

UL

; 4)

Ae.

m

ediu

m-h

igh

scal

e).

Cal

cula

te:

HO

:::

(IR

D x

AR

D +

ISL

x A

SL

+ IU

L x

AU

L +

IC x

AC

) 13

6

Num

ber

of p

rodu

cts

Cre

ate

a du

mm

y va

riab

le U

j-(U

j =

1, if

the

jth

serv

ice

has

a qu

alit

y

34)

wit

h un

ique

sel

ling

ch

arac

teri

stic

whi

ch is

uni

que

to t

he f

irm)

prop

erty

(U

SP

).

Cal

cula

te:

NU

SP

=

L, U

j j

Est

abli

sh tw

o in

dica

tors

( A

S, A

J) w

ith

valu

es r

angi

ng f

rom

1 to

3 (

1 =

In

stit

utio

nal

fact

or

low

, 2 =

medi

um,

3 =

high)

for

: 35

) en

dow

men

t 1)

Exi

stin

g in

fras

truc

ture

in

the

spec

ific

ser

vice

sec

tor (

AS

).

2) L

egal

and

ins

titu

tion

al f

ram

ewor

k co

nduc

ive

to a

fav

orab

le b

usin

ess

envi

ronm

ent

(AJ)

.

Var

iabl

e sp

ecif

icat

ion

PD

C

TR

AD

HO

NU

SP

AS

,AJ

~ >

'0 1 ~ ~. t:

\!l.

o .... :r

~ ~ :l

Ap

pen

dix

Tab

le 4

: In

dic

ator

s o

f pe

rfor

man

ce (

for

Ban

kin

g an

d In

sura

nce)

U"Y1ir0~' "

",y

,~z;·i

M"

I~f:~~~~

¥:~.~

'$"

'.

Rem

arks

·~$:{M';'t .'"

36)

Ret

urn

on a

sset

s R

OA

= P

rofi

ts b

efor

e ta

x /

Ban

ance

she

et to

tal

37)

vari

ance

of r

etur

n on

as

sets

38)

Ret

urn

on e

qui

ty

RO

E =

Pro

fits

bef

ore

tax

/ E

quit

y E

quit

y =

Cap

ital

+ R

eser

ves

39)

vari

ance

of

retu

rn o

n eq

uity

AV

/IC

= A

dded

val

ue /

Inpu

t co

sts

40)

Add

ed v

alue

ove

r A

dded

val

ue =

Prof

its

befo

re t

ax -

cost

s o

f cap

ital

in

put c

osts

In

put c

osts

= S

taff

exp

ense

s +

cos

ts o

f cap

ital

C

osts

of

capi

tal =

Equ

ity

* (i

/10

0);

i =

Gov

ernm

ent b

ond

yiel

d

AV

/lC

= A

dded

val

ue /

Inpu

t cos

ts

Add

ed v

alue

= P

rofi

ts b

efor

e ta

x an

d ba

d de

bts,

aft

er m

inor

ity

inte

rest

s an

d ex

trao

rdin

ary

item

s +

/-R

eser

ves

chan

ges

-co

sts

of e

quit

y in

clud

-

Add

ed v

alue

ove

r in

g pr

emiu

m

41)

inpu

t cos

ts

Inpu

t cos

ts =

All

ope

rati

ng c

osts

+ c

osts

of e

quit

y in

clud

ing

prem

ium

C

osts

of

Equ

ity

= E

quit

y * (

i +

r)/

100

r

= R

isk

prem

ium

of

10 %

i =

Gove

rnm

ent b

ond

yiel

d E

quit

y =

Capi

tal

+ R

eser

ves

42)

vari

ance

of a

dded

va

lue

over

inp

ut c

ost

Var

iabl

e sp

ecif

icat

ion

RO

A,

VR

OA

RO

E,

V R

OE

AV

/IC

a

AV

/IC

b

VA

V/IC

a,

b

>

~ 5. RO

t"' ~

g,

Q.

~o

S ;;! 1;1

Ape

ndix

Tab

le 4

: In

dica

tors

of p

erfo

rman

ce (

for

Ban

king

and

Ins

uran

ce)

43)

I Int

eres

t m

argi

n

44)

Var

ianc

e o

f In

tere

st

mar

gin

45)

I Uni

t cos

t

46)

I Var

ianc

e o

f U

nit c

ost

47)

I Cap

ital

rat

io

Rem

arks

Inte

rest

mar

gin

= N

et i

nter

est

inco

me

/ N

on-b

anks

dep

osit

s

Uni

t cos

ts =

(S

taff

cos

ts +

Off

ice

expe

nses

) /

Gro

ss i

ncom

e G

ross

inc

ome

= n

et i

nter

est i

ncom

e +

non

int

eres

t in

com

e

Equ

ity

/ B

alan

ce s

heet

tota

l

IM

Var

iabl

e sp

ecif

icat

ion

VIM

UC

VU

C

CR

~ f Q. R·

~ - s. s· Q. ~ ;;!

List of contributors

Blankart, Charles Beat, Professor of Economics, Institute for Public Policy in Economics and Fin­ance, Humboldt University, Spandauerstr. 1,0-1020 Berlin

Blattner, Niklaus, Professor of Economics, Labour and Industrial Economics Research Unit (LIU), University of Basle, Missionsstr. 64A, CH-4055 Basle

Etter, Christian, Head of International Services Section, Federal Office for Foreign Economic Affairs, Bundeshaus Ost, CH-3003 Berne

Felder, Stefan, Senior Assistant, Institute for Empirical Research in Economics, University of Zurich, Bliimlisalpstr. 10, CH-8006 Zurich

Finsinger, Jorg, Professor of Economics, Institute for Business Economics, University of Vienna, Tiirkenstr. 23110, A-I090 Vienna

Gobat, Jeanne, Assistant, Institute for Empirical Research in Economics, University of Zurich, Bliimlisalpstr. 10, CH-8006 Zurich

Graeber, Norbert, Assistant, Institute for Trade Affairs within the Institute for Empirical Research in Economics, University of Saarbruecken, 1m Stadtwald, Gebaude 15,0-6600 Saarbruecken 11

Kleeb, Ralph, Assistant, Institute for Empirical Research in Economics, University of Zurich, Bliimlisalpstr. 10, CH-8006 Zurich

Jeker, Rolf M., Ambassador, Deputy Director, Federal Office for Foreign Economic Affairs, Bun­deshaus Ost, CH-3003 Berne

List of contributors (continued)

Muller, Karin, Assistant, Socioeconomic Institute, University of Zurich, Ramistr. 71, CH-8006 Zurich

Nielsen, Claudia, Assistant, Socioeconomic Institute, University of Zurich, Ramistr. 71, CH-8006 Zurich

Ortmann, B~nedikt, Assistant, Institute for Trade Affairs within the Institute for Empirical Rese­arch in Economics, University of Saarbruecken, 1m Stadtwald, Gebaude 15, D-6600 Saarbru­ecken 11

Prioni, Paola, Assistant, Socioeconomic Institute, University of Zurich, Ramistr. 71, CH-8006 Zurich

Schmid, Frank A., Assistant, Institute for Business Economics, University of Vienna, Tiirkenstr. 23110, A-I090 Vienna

Schwandt, Friedrich, Assistant, Institute for Public Policy in Economics and Finance, Humboldt University, Spandauerstr. 1,0-1020 Berlin

TIetz, Bruno, Professor of Economics, Institute for Trade Affairs within the Institute for Empirical Research in Economics, University of Saarbruecken, 1m Stadtwald, Gebaude 15, D-6600 Saarbruecken. 11

Zweifel, Peter, Professor of Economics, Institute for Empirical Research in Economics, Univer­sity of Zurich, Blumlisalpstr. 10, CH-8006 Zurich