Examining causality between market share and competitiveness: Case study textile industry

Abstract

The paper dealt with the existence of causality in Granger's sense between competitiveness and market share, and vice versa, on emerging markets so as to answer the question whether it is possible to forecast the movement of the market share of an enterprise based on the data about the movement of the competitiveness of that enterprise. The research study was carried out on 96 textile companies from Serbia, Montenegro, and Bosnia and Herzegovina. The results of research have shown that relationship between competitiveness and market share is generally weak and in many industrial sectors it is nonexistent. In other words, the research results reveal that the existence of causality in Granger's sense between competitiveness and market share on the selected emerging markets depends on the branch of textile industry.