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Declining Concentration in UK Manufacturing? A problem of measurement


  • Keith Cowling
  • Fahmi Mohd Yusof
  • Guy Vernon


It has become conventional wisdom that market concentration in the UK has fallen over recent history. However, the typical assumption has been that all imports are competitive so that any increase in import penetration implies a decline in market concentration. In a world of transnationally organized production and trade this would seem an inappropriate working assumption. Our analysis of the UK market for cars, vans, trucks and buses, where the necessary detailed firm data is available, supports this contention: an accurate assessment of who controls imports is crucial in the measurement of market concentration.

Suggested Citation

  • Keith Cowling & Fahmi Mohd Yusof & Guy Vernon, 2000. "Declining Concentration in UK Manufacturing? A problem of measurement," International Review of Applied Economics, Taylor & Francis Journals, vol. 14(1), pages 45-54.
  • Handle: RePEc:taf:irapec:v:14:y:2000:i:1:p:45-54
    DOI: 10.1080/026921700101470

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    References listed on IDEAS

    1. Kumar, Manmohan S, 1985. "International Trade and Industrial Concentration," Oxford Economic Papers, Oxford University Press, vol. 37(1), pages 125-133, March.
    2. Robert C. Feenstra, 1998. "Integration of Trade and Disintegration of Production in the Global Economy," Journal of Economic Perspectives, American Economic Association, vol. 12(4), pages 31-50, Fall.
    3. Hipple, F Steb, 1990. "The Measurement of International Trade Related to Multinational Companies," American Economic Review, American Economic Association, vol. 80(5), pages 1263-1270, December.
    4. Utton, M A, 1982. "Domestic Concentration and International Trade," Oxford Economic Papers, Oxford University Press, vol. 34(3), pages 479-497, November.
    5. Cowling, Keith, 1978. "Monopolies and Mergers Policy : A View on the Green Paper," The Warwick Economics Research Paper Series (TWERPS) 139, University of Warwick, Department of Economics.
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