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An analysis of industry concentration in South African manufacturing, 1972-2001

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  • Johannes Fedderke
  • Dietmar Naumann

Abstract

This article examines industry concentration for the South African manufacturing sector over the 1972-2001 period, for the three-digit industry classification. The article notes both the high level of industry concentration in South African manufacturing and a rising trend in concentration across a wide range of industries as measured by the Gini and Rosenbluth coefficients. The article examines the impact of concentration on investment rates using a dynamic heterogeneous panel estimation methodology. We find that increased concentration unambiguously lowers investment rates.

Suggested Citation

  • Johannes Fedderke & Dietmar Naumann, 2011. "An analysis of industry concentration in South African manufacturing, 1972-2001," Applied Economics, Taylor & Francis Journals, vol. 43(22), pages 2919-2939.
    • Handle: RePEc:taf:applec:v:43:y:2011:i:22:p:2919-2939
    DOI: 10.1080/00036840802631835
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    Cited by:

    1. Gitana Dudzevičiūtė & Gitana Dudzevičiūtė, 2013. "Lithuanian manufacturing trends in the context of developed and developing countries," Entrepreneurship and Sustainability Issues, VsI Entrepreneurship and Sustainability Center, vol. 1(1), pages 55-66, September.
    2. Willem H. Boshoff, 2015. "Illegal Cartel Overcharges in Markets with a Legal Cartel History: Bitumen Prices in South Africa," South African Journal of Economics, Economic Society of South Africa, vol. 83(2), pages 220-239, June.
    3. Johannes Fedderke & Nonso Obikili & Nicola Viegi, 2018. "Markups and Concentration in South African Manufacturing Sectors: An Analysis with Administrative Data," South African Journal of Economics, Economic Society of South Africa, vol. 86(S1), pages 120-140, January.
    4. Gitana Dudzevičiūtė, 2013. "Lithuanian manufacturing trends in the context of developed and developing countries," Post-Print hal-01694317, HAL.
    5. Philippe Aghion & Johannes Fedderke & Peter Howitt & Nicola Viegi, 2013. "Testing creative destruction in an opening economy," The Economics of Transition, The European Bank for Reconstruction and Development, vol. 21(3), pages 419-450, July.
    6. Willem H. Boshoff, 2013. "Why define markets in competition cases?," Working Papers 10/2013, Stellenbosch University, Department of Economics.
    7. Johannes Fedderke & Nonso Obikili & Nicola Viegi, 2018. "Markups and Concentration in South African Manufacturing Sectors: An Analysis with Administrative Data," South African Journal of Economics, Economic Society of South Africa, vol. 86(S1), pages 120-140, January.
    8. Fedderke, Johannes W., 2018. "Exploring unbalanced growth: Understanding the sectoral structure of the South African economy," Economic Modelling, Elsevier, vol. 72(C), pages 177-189.

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    More about this item

    JEL classification:

    • L11 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Production, Pricing, and Market Structure; Size Distribution of Firms
    • L5 - Industrial Organization - - Regulation and Industrial Policy
    • L6 - Industrial Organization - - Industry Studies: Manufacturing

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