Seller Concentration in the Grain Milling Industry

Abstract

Problem statement:The main purpose of the study was to explore the levels of concentration in Zimbabwe's grain-milling industry during period . The study could not be extended to periods after 2005 because the situation in the country had become economically chaotic. Approach: The methodology adopted involved the calculation of the concentration indices such as the Herfindall-Hirschman index, Hannah and Kay index, the Entropy index and the Four-Firm Concentration ratio. Results: The study revealed that liberalisation of the industry reduced seller concentration levels. The response to deregulation in this particular sector confirms the theoretical expectation that liberalisation promotes competition and reduces market power of existing firms, which is also consistent with the world-wide trends. Conclusion: The policies adopted at the inception of Economic Structural Adjustment Programmed (ESAP) should be pursued more vigorously to create a manufacturing base which is open to competition and which is insulated from adverse effects of possible manipulation by a few large firms. Policy should be aimed at maintaining affordability of the basic commodities to the consumers as well as ensuring viability to the manufacturers. With high levels of industrial concentration, producers are able to operate at a higher-cost system without losing market share, but this is to the detriment of the consumers.

Market Structure of Malaysian Palm Oil Refining Industry

“…where, α > 0; α ≠ 1, n equals the number of firms in the market, S i represents the market share of the firms in the market, and α refers to elasticity parameter and to be determined freely in order to reflect about changes in concentration on entry and exit of firms (Bikker & Haaf, 2002). As stated by Hannah and Kay (1977), for a sensible result, it is suggested that the α value range from 0.6 to 2.5 (Charumbira & Sunde, 2010;Bikker & Haaf, 2002;Ferguson & Ferguson, 1994). Following OECD (2013) and Charumbia and Sunde (2010) as the value of α = 2 would yield the same result as HHI, HKI is often referred to as HHI.…”

“…The empirical work of Charumbira and Sunde (2010) combined several market concentration indices in studying the market structure of grain milling industry in Zimbabwe from 1985 to 2005. The concentration indices of their studies were inclusive of concentration ratio, Herfindahl index, Hannah and Kay index (HKI), and entropy index (EI).…”

Concentration and Spatial Clustering of Forest-Based Thermoelectric Plants in Brazil

“…Relating to industrial concentration research, this study highlights: Chalvatzis and Ioannidis [10], Charumbira and Sunde [11], Coelho Junior [12], [13], Coelho Junior et al [14]- [20], Mohammed et al [21], Nawrocki and Carter [22], Selvatti et al [23], and Van Egeraat et al [24]. Regarding special conglomerate analyses, we emphasize: Arroyo et al [25], Lieu et al [26], Nigatu et al [27], Randolph [28], and Yih et al [29].…”

“…According to Charumbira and Sunde [11], a concentration analysis uses indicators concerning the particularities, complexities, and dimensions connected with the market. These indicators can be classified as partial or summary.…”

Diversification and Performance of Group-Affiliated Firms during Institutional Transitions: The Case of the Chinese Textile Industry

“…We introduce a set of variables representing diversification accordingly. First, we introduce the rules to determine whether any two given segments are related to each other or not; after that, the entropy measure (e.g., Charumbira and Sunde, 2010;Lee et al, 2008) is used to calculate the level of the Unrelated Diversification (UDIV it ) and Related Diversification (RDIV it ). The degree of unrelated diversification of firm i in period t, UDIV it can be calculated as:…”