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Competition in the Latvian and Baltic Grocery Retail Markets

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  • Alf Vanags

    (Baltic International Centre for Economic Policy Studies (BICEPS))

  • Morten Hansen

    (Stockholm School of Economics in Riga (SSE Riga))

Abstract

This report analyzes concentration in the grocery retail market in the three Baltic countries: Estonia, Latvia and Lithuania. The markets (including some comparator Eastern and Western European markets) are analyzed using two standard measures: the Herfindahl Hirschman Index and the four firm concentration ratio. By applying a standard classification as used, for example by the US Department of Justice, the analysis reveals that the Latvian grocery retail market is competitive, the Estonian moderately concentrated, and the Lithuanian market highly concentrated. Given this observation, it is surprising that Latvia, where the grocery retail market is the most competitive (out of the three Baltic countries), is the country where further regulatory measures against the grocery retailers have been discussed the most.

Suggested Citation

  • Alf Vanags & Morten Hansen, 2007. "Competition in the Latvian and Baltic Grocery Retail Markets," SSE Riga/BICEPS Occasional Papers 3, Baltic International Centre for Economic Policy Studies (BICEPS);Stockholm School of Economics in Riga (SSE Riga).
    • Handle: RePEc:bic:opaper:3
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    Cited by:

    1. Zuzana Smidova, 2015. "Policy areas for increasing productivity in Latvia," OECD Economics Department Working Papers 1255, OECD Publishing.

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