Industry concentration in Europe: Trends and methodological insights

Calligaris, Sara, Chaves, Miguel, Criscuolo, Chiara ORCID: 0000-0002-0428-7884, De Lyon, Joshua, Greppi, Andrea and Pallanch, Oliviero (2024) Industry concentration in Europe: Trends and methodological insights. CEP Discussion Papers (CEPDP2063). London School of Economics and Political Science. Centre for Economic Performance, London, UK.

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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.

Item Type:	Monograph (Discussion Paper)
Official URL:	https://cep.lse.ac.uk/_new/publications/discussion...
Additional Information:	© 2024 The Author(s)
Divisions:	Centre for Economic Performance
Subjects:	H Social Sciences > HC Economic History and Conditions
JEL classification:	L - Industrial Organization > L1 - Market Structure, Firm Strategy, and Market Performance > L11 - Production, Pricing, and Market Structure; Size Distribution of Firms L - Industrial Organization > L2 - Firm Objectives, Organization, and Behavior > L22 - Firm Organization and Market Structure: Markets vs. Hierarchies; Vertical Integration; Conglomerates; Subsidiaries F - International Economics > F1 - Trade > F14 - Country and Industry Studies of Trade
Date Deposited:	13 Feb 2025 14:36
Last Modified:	13 Feb 2025 14:36
URI:	http://eprints.lse.ac.uk/id/eprint/126768

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