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Industrija
2000, vol. 26, iss. 1-4, pp. 1-19
article language: Serbian
document type: unclassified
published on: 02/06/2007
Market structures in Yugoslav industry
University of Belgrade, Faculty of Economy

Abstract

Through analyzing the supply concentration inside the Yugoslav industry groupings we shall try to draw the attention of those shaping the industrial policy to this highly important problem. Similarly as in the developed countries of the West, mergers and acquisitions may be stimulated or prohibited through the measures of industrial policy, i.e. various market structures may be created, in the function of achieving the basic goal of development - increasing the whole industry's efficiency. In order to achieve appropriate suggestions for industrial policy, the industry concentration level indices should be selected. In the developed countries CR indexes most frequently applied as the measure of concentration, either as CR4, CR5, CR10 or CR50. Beside those indices there are numerous others in theory as well, like Herfindahl index, Gini coefficient, entropy index Lerner index, etc. Concentration is a measure of competition or control intensity, providing an information on the relative size of firms on a given market. It is measured through the market participation of the firm (MSij) and (Fi) in industry (Ij), defining the total value of the firm sale in the total sale value of the industry j. The concentration level of supply in groupings of the Yugoslav industry measured through the participation of CR4 and Herfindahl index is very high, tending to increase. In 1997, out of 83 industrial groupings, in 51 there was a duopol competition, in 2 full competition, while in 7 there was just a single firm with a dominant monopolistic position.

References

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