L11

Production, Pricing, and Market Structure; Size Distribution of Firms

Trade Liberalization, Rival Exporters and Reallocation of Production: An Analysis of Indian Manufacturing

Employing a difference-in-difference estimation technique on firm-level data on Indian exporters, we show that the removal of US textile and apparel quotas was associated with a relative increase in sales of products where India was previously quota-restricted,  but a relative decrease in sales of products where China was previously quota-restricted.  We hence highlight the importance of accounting for falling trade barriers for rival exporters in analyzing trade liberalization effects.

Price Elasticities and Pricing Power in Emerging Markets: The Case of Petrochemicals Derived Plastics in South Africa

This paper examines whether there necessarily exists a conflict between allocative and productive efficiency in small open economy markets. That productive efficiency favours market concentration is not in dispute, and the sole question we face is whether allocative efficiency suffers under high market concentration. We proceed theoretically and econometrically. We find that the conflict between productive and allocative efficiency is not necessarily as stringent as the international competition policy literature suggests should be the case.

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

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.

Industry Concentration in South African Manufacturing Industry: Trends and Consequences, 1972-96

This paper examines industry concentration for the South African manufacturing sector over the 1972-1996 period, for the three digit industry classification. The paper notes both the high level of industry concentration in South African manufacturing, and a rising trend in concentration across a wide range of industries. The paper further explores the impact that industry concentration has on a wide range of indicators of industry performance. We find that increased concentration serves to lower output growth, raise unit labour costs, and to lower labour productivity.

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