Marble Industry-Specific Barriers to Market Entry in Afghanistan

by

ACKNOWLEDGEMENT

I would take this opportunity to thank my research supervisor, family and friends for their support and guidance without which this research would not have been possible.

DECLARATION

I, [type your full first names and surname here], declare that the contents of this dissertation/thesis represent my own unaided work, and that the dissertation/thesis has not previously been submitted for academic examination towards any qualification. Furthermore, it represents my own opinions and not necessarily those of the University.

Signed __________________ Date _________________

ACKNOWLEDGEMENTII

DECLARATIONIII

CHAPTER 1: INTRODUCTION5

1.1.Research problems5

1.2.Research objectives and Research questions6

1.3.Background7

1.4.Research limitations8

CHAPTER 2: THEORETICAL BACKGROUND10

2.1. Market Structure10

2.2. Barriers to entry15

2.2.1. Types of barriers to market entry16

2.2.2. Structural barriers to entry17

2.2.3.Strategic barriers to entry17

2.2.4.Institutional barriers to entry18

CHAPTER 3: AFGHANISTAN MARKET FOR MARBLE INDUSTRY19

3.1. Number and size distribution of firms20

3.2. Marble Reserves23

3.3. Market Opportunities24

3.4.Raw materials26

3.5.Internal and external market demand27

3.6.Factors of Production28

CHAPTER 4: EMPIRICAL MARKET ANALYSIS29

4.1.Methodology29

4.2. Data Description32

4.3. Empirical model32

4.4. Market structure36

4.5. Firm's Conduct and Performance39

4.6. Barriers40

CHAPTER 5: CONCLUSION42

51. Key Results45

5.2. Policy implication48

5.3. Recommendation for future researches48

5.3.1 Role of government and Development of infrastructure51

5.3.2 Improvement in the security situation53

5.3.3 International exhibitions53

5.3.4 Firm Strategy, Structure and Rivalry54

5.4 Role of the private sector54

5.5 Role of international NGO's/Donors57

REFERENCES60

CHAPTER 1: INTRODUCTION

This chapter will give a brief introduction of the research conducted on the marble industry-specific barriers to market entry in Afghanistan. Initially, the background (theory, current state of the economy, and current state of marble industry) for the study would be given. Furthermore, identification of the research problems (existing problems for the marble industry) and the research gap for the study would be highlighted. In addition to this, objective of the thesis and research questions (the major objectives of the thesis derive from the identified research questions), and the scope and limitations of the research would be defined.

Research problems

According to Bradley, & Frederick. (2002) there is a shortage of competition in the marble industry, which only happens due to non-competent market structure framework, or the performance of the firms. The Afghan marble industry is prevailing over the world market industries, due to the reason of low price and refined products. Additionally, there is no trend among the Afghan firms to attain the new and advanced technology to advance their marketing and industrial management.

Ministry of Commerce and Industry, (2013) reflected that for determining all these issues arising from market failures, the research suggests that the government and the higher authorities give the incentives to the firms that are operating in the marble processing to increase their output and attain technological advancements. Ministry of Commerce and Industry, (2013)identified that the supply chain for the marble production has two main stages, that explicitly are processing and quarrying, any sort of incentive that is designed and planned to expand the production, it eventually concludes for firms that are operating in both the processing and quarrying to use more advanced and standard technology which has the ability to produce more (Nicholson, & Walter, 2002).

Research objectives and Research questions

1.2.1 Research Objectives

The objective of this research is to identify the major ...