Assessing of the Competitiveness Level in the Industry using the Correlation Analysis on the Example of Agriculture of the Republic of Tatarstan, Russian Federation

This technique allows us to estimate the degreeof monopolization of the industry and its sub-sectors, as well as to hold a comparativeanalysis and to identify trends of development. Technique consists several steps.Determine the maximum amount of product produced by any company in the sector inthe period and the percentage of the volume of production from which the companycan be named as leader. Fuzzy numbers of leadership are calculated for each firm’sproduct. If the company produces more than one product, the fuzzy numbers for eachproduct are aggregated into one by using the fuzzy operation "or". Dependingon the percentage level in the industry will change and the number of companiesthat are recognized as leaders. Simulations proved that correlation between percentagelevel and number of leaders in industry depends on MARKET structure: Monopoly, oligopolyor pure competition. Correlation coefficient tends from -1 for the monopolized industriesto 0 for pure competition. We provided computer simulation to calculate the boundariesof correlation coefficient to identify types of market structure. The analysis washeld according to the industrial and economic activity of all 509 agricultural enterprisesand 13 types of products in Republic Tatarstan of Russian Federation during 2011-2013.The obtained results are comparable with the results of the calculation the Herfindahl-Hirschmanindex for each product. However, the proposed technique allows us to make a generalassessment of industry’s competitiveness. The technique has an applied significancein the development of government support measures.

Website: http://www.arjonline.org/agricultural-sciences/american-research-journal-of-agriculture/