Industrial Deconcentration in U.K. Manufacturing since 1980

Andrew Henley

The Manchester School of Economic & Social Studies, 1994, vol. 62, issue 1, 40-59

Abstract: Weighted average five-firm concentration ratios and estimated Herfindahl indices computed for 104 British manufacturing industries from 1980 to 1987 point to a modest fall in concentration over the period. This decline appears to result from deconcentration in a sizeable number of rapidly changing industrial sectors, particularly in engineering, information technology equipment, and electronics. Regression analysis indicates the importance of changes in technological conditions, although it cannot identify whether these have operated directly through changes in minimum efficient scale or indirectly through the reduction of entry barriers. The high level of 1980s merger activity does not appear to have contributed towards rising concentration. Copyright 1994 by Blackwell Publishers Ltd and The Victoria University of Manchester

Date: 1994
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