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An Analysis of Industry Concentration in South African Manufacturing, 1972-2001

Author

Listed:
  • Johannes Fedderke
  • Dietmar Naumann

Abstract

This paper explores the trends in industry concentration of the South African manufacturing industry over the period from 1972 - 2001, with a primary focus on developments post 1996. Across all sectors of the manufacturing industry, concentration is found to have decreased. The analysis of bivariate associations yields several results. Amongst others, sectors which are highly concentrated (as measured by the Rosenbluth index) are more likely to exhibit lower employment growth. This is consistent across all ten census years. This paper also provides support for earlier results that low investment rates can in part be attributed to high levels of concentration.

Suggested Citation

  • Johannes Fedderke & Dietmar Naumann, 2005. "An Analysis of Industry Concentration in South African Manufacturing, 1972-2001," Working Papers 26, Economic Research Southern Africa.
  • Handle: RePEc:rza:wpaper:26
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    File URL: http://www.econrsa.org/node/51
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    Cited by:

    1. Willem H. Boshoff, 2013. "Why define markets in competition cases?," Working Papers 10/2013, Stellenbosch University, Department of Economics.
    2. Philippe Aghion & Johannes Fedderke & Peter Howitt & Chandana Kularatne & Nicola Viegi, 2008. "Testing Creative Destruction in an Opening Economy : the Case of the South African Manufacturing Inudstries," Documents de Travail de l'OFCE 2008-23, Observatoire Francais des Conjonctures Economiques (OFCE).
    3. Philippe Aghion & Johannes Fedderke & Peter Howitt & Nicola Viegi, 2013. "Testing creative destruction in an opening economy," The Economics of Transition, The European Bank for Reconstruction and Development, vol. 21(3), pages 419-450, July.

    More about this item

    Keywords

    Concentration; Manufacturing; South Africa; Investment;

    JEL classification:

    • L11 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Production, Pricing, and Market Structure; Size Distribution of Firms
    • L5 - Industrial Organization - - Regulation and Industrial Policy
    • L6 - Industrial Organization - - Industry Studies: Manufacturing

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