Trends in Economic Concentration in South Africa

Fourie, F. C. v. N.; Smit, Mathilda

doi:10.1111/j.1813-6982.1989.tb00195.x

Cited by 10 publications

(16 citation statements)

References 18 publications

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“…As do Du Plessis (1978), Reekie (1984) and Fourie andSmit (1989). Du Plessis (1977) and Fourie and Smit (1989) also use fixed assets and employment. But we are convinced by Stigler's argument (1968:30) that "two firms are equal in a market if they sell or buy equal quantities in that market.…”

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confidence: 88%

Concentration and Profits in South Africa: Monopoly or Efficiency?

Leach

1992

South African J Economics

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confidence: 88%

Concentration and Profits in South Africa: Monopoly or Efficiency?

Leach

1992

South African J Economics

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“…If one takes into account that the average Gini value for the South African manufacturing sector increased by 0,039 from 1972 to 1982 (Fourie and Smit 1989), the results indicate a lengthening of the lag by approximately 1,2 quaters or 3,6 months during the ten years 1972-82. According to these calculations the concentration trend in South Africa has contributed significantly to the resistance of prices to decreases in aggregate spending.…”

Section: Saje V59(1) P26mentioning

confidence: 99%

“…Also known as the C3 concentration ratio, this absolute measure shows the combined market share of the three largest firms in an industry. In order to have an indicator of long run trends in concentration, measures of relative concentration, primarily Gini-coefficients provided by Fourie and Smit (1989), were used. The price index for each industry group is the producer price of commodities (output of South African industry for South African consumption).…”

Section: Datamentioning

confidence: 99%

“…In addition one can calculate the consequences of trends in concentration. While no data on the trend in C3 is available for South Africa, Fourie and Smit (1989) provide data on the trend in relative measures of concentration, inter alia the Gini-coefficient. Although absolute and relative measures of concentration cannot be regarded as substitutes, these measures do give some indication of the state of affairs.…”

Section: Saje V59(1) P25mentioning

confidence: 99%

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Economic Concentration and Anti ‐ Inflationary Demand Policy in South Africa

Fourie

1991

South African J Economics

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“…(b) The importance of taking a broader and more comprehensive view of suggestions regarding the redistribution of corporate wealth, the breaking up of monopolies and the nationalization of financial and mining conglomerates is emphasized. (c) Considering the high degree of product market concentration in the South African manufacturing sector (Fourie and Smit, 1989) and the high degree of (racial and sexual) wage inequality present in the South African labour market, the relationship between concentration and wages in a South African context warrants an investigation.…”

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confidence: 99%

Wages and the Structure of Product Markets

Smit

1995

South African J Economics

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EMPERICAL STUDIES show a pattern of inter-industry wage differentials in which all workers in certain industries, irrespective of their personal characteristics, are paid higher wages than comparable workers in other industries (see Dickens and Katz, 1987:48-89 for a survey). These wage differentials have been found to persist over time (Cullen, 1956; Thaler, 1989:182). Furthermore, higher wages seem to be positively correlated with certain characteristics of industry, in particular concentration in product markets (Mellow, 1983;Kwoka, 1983;Long and Link, 1983). These empirical findings suggest that the structure of product markets could be an important factor contributing to inter-industry wage differentials. The empirical validity of the relationship between concentration in industry and wages is accepted by all schools of thought within the field of labour economics. Yet, theoretical attempts to explain these findings are numerous and diverse. The bone of contention seems to be whether the inter-industry wage differential reflects a skill differential and thus so-called rational economic behaviour by high wage industries, or whether higher wages are the result of power plays and strategic manipulation by firms with product market power (Weiss, 1966;Ryan, 1981) . An important related issue is whether the link between product market structure and labour market outcomes reflects a need for intervention in the product market. Labour economics is, however, not the only branch of economics with an interest in the effects of market structure on the behaviour and performance of firms or industries. Scholars in industrial economics have studied the link between competition or monopoly power and product market outcomes such as prices and profits. There is al-so much debate about the direction of causality between market structure, behaviour and performance. This paper argues that valuable insights 1995 SAJE v63 (1) p2 can be obtained from this debate in industrial economics by identifying, ordering, and systemizing the various lines of argument within the labour economics field about the link between product market structure and labour market outcomes. The paper demonstrates, firstly, that the debate on the link between concentration and wages is a debate about the direction of causality between industrial structure, industry or firm wage setting behaviour, and industry or firm performance. Secondly, the paper maintains that the line of argument reflected in opposing views within this debate shows strong resemblance to the opposing views in the debate in industrial economics about the causality between concentration, product market behaviour and performance. The debate in industrial economics on the causal relationship between market structure and product market performance accordingly provides a framework for a new and more coherent analysis of the debate in labour economics about the relationship between market structure and labour market out-comes. Lastly, the paper argues that the causal relation between concentra...

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Trends in Economic Concentration in South Africa

Cited by 10 publications

References 18 publications

Concentration and Profits in South Africa: Monopoly or Efficiency?

Concentration and Profits in South Africa: Monopoly or Efficiency?

Economic Concentration and Anti ‐ Inflationary Demand Policy in South Africa

Wages and the Structure of Product Markets

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