Patrick McCloughan (Indecon International Economic Consultants, Dublin)
Abstract
This paper estimates concentration in Irish manufacturing industry (1991-2001) by applying the McCloughan and Abounoori technique for calculating the concentration ratio given grouped data. The results suggest high aggregate concentration, which appears less a function of multi-plant operations than in the past, possibly reflecting industrial policy changes. Industrial concentration appears higher on average in Ireland than in other countries and there is a significant relationship between concentration and upper-tail size inequalities, suggesting that it is the top 1 or 2 firms that typically determine concentration. Concentration does not appear to vary with foreign ownership or export activity in Irish industry.
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