Industry concentration in Europe: Trends and methodological insights

Sara Calligaris, Miguel Chaves, Chiara Criscuolo, Joshua De Lyon, Andrea Greppi and Oliviero Pallanch

LSE Research Online Documents on Economics from London School of Economics and Political Science, LSE Library

Abstract: Concentration - the share of an industry's output accounted for by its largest firms and a frequently used proxy of competition - has increased in European countries. This paper provides evidence about this development by introducing several methodological refinements in the cross-country measurement of concentration: it defines industries at a disaggregated level, mostly 3-digit; it takes into account the geographic level at which competition takes place - domestic, European or global; and it accounts for linkages between firms within the same domestic and multinational business group in the relevant geographic region of competition. It then applies these improvements to representative data for fifteen European countries, showing that average concentration increased by about 5 percentage points over the period 2000-2019, from 26% to more than 31%. Third, the paper investigates how each of the methodological improvements affects the levels and trends of concentration.

Keywords: concentration; competition; market power (search for similar items in EconPapers)
JEL-codes: F14 L11 L22 (search for similar items in EconPapers)
Pages: 67 pages
Date: 2024-12-13
New Economics Papers: this item is included in nep-com, nep-eec, nep-mac and nep-reg
References: Add references at CitEc
Citations:

Downloads: (external link)
http://eprints.lse.ac.uk/126768/ Open access version. (application/pdf)

Related works:
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:ehl:lserod:126768

Access Statistics for this paper

More papers in LSE Research Online Documents on Economics from London School of Economics and Political Science, LSE Library LSE Library Portugal Street London, WC2A 2HD, U.K.. Contact information at EDIRC.
Bibliographic data for series maintained by LSERO Manager ().