Government and industry performance: a comparative study
A number of UK industries are heavily dependent on the government as a major purchaser. The Ministry of Defence and the National Health Service are essentially monopsonists for the industries supplying them. As a monopsonist, government can influence the size, structure, conduct and performance of the industries. This paper examines wheather industries relying heavily on government purchases will differ in their structure, conduct and performance-characteristics and whether dependence on goverment can have favourable or adverse effects on industry performance. The hypothesis is tested by comparing the performance of industries dependent on government purchasing - defence, pharmaceuticals and medical equipment - with a control group of other non-dependent industries.
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Volume (Year): 29 (1997)
Issue (Month): 9 ()
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