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Concentration, competition policy and the role of small and medium-sized enterprises in South Africa's industrial development

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  • Raphael Kaplinsky
  • Claudia Manning

Abstract

It is widely recognised that the prospects of small and medium-sized enterprises (SMEs) are affected by the degree of industrial concentration. Invariably concentration measures are determined for an industry (market structure) to assess whether this affects market behaviour and hence the market performance of different sized firms. The analysis of the South African furniture industry shows that intra-industry concentration plays little role in explaining the poor performance of SMEs. Instead, it is concentration in the furniture retailing industry - which is perhaps in itself a function of concentration in the financial sector — which primarily affects their relatively adverse performance.

Suggested Citation

  • Raphael Kaplinsky & Claudia Manning, 1998. "Concentration, competition policy and the role of small and medium-sized enterprises in South Africa's industrial development," Journal of Development Studies, Taylor & Francis Journals, vol. 35(1), pages 139-161.
  • Handle: RePEc:taf:jdevst:v:35:y:1998:i:1:p:139-161
    DOI: 10.1080/00220389808422558
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    Cited by:

    1. Kaplinsky, Raphael & Morris, Mike, 1999. "Trade Policy Reform and the Competitive Response in Kwazulu Natal Province, South Africa," World Development, Elsevier, vol. 27(4), pages 717-737, April.
    2. Andrews, Matthew, 2008. "Is Black Economic Empowerment a South African Growth Catalyst? (Or Could It Be...)," Working Paper Series rwp08-033, Harvard University, John F. Kennedy School of Government.
    3. Matt Andrews, 2008. "Is Black Economic Empowerment a South African Growth Catalyst? (Or Could it Be...)," CID Working Papers 170, Center for International Development at Harvard University.
    4. Mani, Sunil, 2001. "Government and Innovation Policy An Analysis of the South African Experience since 1994," UNU-INTECH Discussion Paper Series 2, United Nations University - INTECH.
    5. Srinivas, Smita, 2006. "Industrial Development and Innovation: Some Lessons from Vaccine Procurement," World Development, Elsevier, vol. 34(10), pages 1742-1764, October.
    6. Murphy, James T., 2007. "The Challenge of Upgrading in African Industries: Socio-Spatial Factors and the Urban Environment in Mwanza, Tanzania," World Development, Elsevier, vol. 35(10), pages 1754-1778, October.

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