Markups and Concentration in South African Manufacturing Sectors: An Analysis with Administrative Data

Johannes Fedderke, Nonso Obikili and Nicola Viegi

South African Journal of Economics, 2018, vol. 86, issue S1, 120-140

Abstract: This paper uses newly available firm‐level tax data to evaluate the market structure in South African manufacturing sectors in the period 2010‐2012. To describe the market structure, we compute markups for South African manufacturing firms and concentration indexes for 4‐digit manufacturing sectors. We find both significant markups and significant concentration across most sectors. We compare computed markups and concentration with early estimates in South Africa and with other international benchmark countries. We then examine the market structure based on the concentration, firms size and entry and exit dynamics to rule out some potential explanations for relatively high markups. We find that the relationships are not monotonic and point to the importance of specific barriers to entry in explaining the relationship between these three characteristics.

Date: 2018
References: Add references at CitEc
Citations: View citations in EconPapers (18)

Downloads: (external link)
https://doi.org/10.1111/saje.12175

Related works:
Working Paper: Markups and concentration in South African manufacturing sectors: An analysis with administrative data (2016)
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:bla:sajeco:v:86:y:2018:i:s1:p:120-140

Ordering information: This journal article can be ordered from
http://www.blackwell ... bs.asp?ref=0038-2280

Access Statistics for this article

South African Journal of Economics is currently edited by Philip A. Black

More articles in South African Journal of Economics from Economic Society of South Africa Contact information at EDIRC.
Bibliographic data for series maintained by Wiley Content Delivery ().