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An empirical analysis of productivity growth and industrial concentration in us manufacturing

  • Munisamy Gopinath
  • Daniel Pick
  • Yonghai Li

This manuscript focuses on the productivity-industrial concentration relationship in the US manufacturing industries, while accounting for external and internal sources of knowledge. It is found that there is a critical level of industrial concentration beyond which its relationship with productivity growth becomes negative. Results suggest that static welfare losses of increasing concentration in manufacturing industries can be offset by welfare gains from productivity growth.

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File URL: http://www.tandfonline.com/doi/abs/10.1080/0003684042000177143
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Article provided by Taylor & Francis Journals in its journal Applied Economics.

Volume (Year): 36 (2004)
Issue (Month): 1 ()
Pages: 1-7

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Handle: RePEc:taf:applec:v:36:y:2004:i:1:p:1-7
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  1. Gort, Michael & Sung, Nakil, 1999. "Competition and Productivity Growth: The Case of the U.S. Telephone Industry," Economic Inquiry, Western Economic Association International, vol. 37(4), pages 678-91, October.
  2. Peretto, Pietro F., 1995. "Sunk Costs, Market Structure, and Growth," Working Papers 95-34, Duke University, Department of Economics.
  3. Smulders, J.A. & van de Klundert, T.C.M.J., 1995. "Imperfect competition, concentration and growth with firm-specific R&D," Other publications TiSEM 3287368d-bf5d-421a-91c1-e, Tilburg University, School of Economics and Management.
  4. Dixit, Avinash K & Stiglitz, Joseph E, 1975. "Monopolistic Competition and Optimum Product Diversity," The Warwick Economics Research Paper Series (TWERPS) 64, University of Warwick, Department of Economics.
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