European firm concentration and aggregate productivity / Tommaso Bighelli, Filippo di Mauro, Marc Melitz, Matthias Mertens
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Discovery
1756257841
URN
urn:nbn:de:gbv:3:2-136067
DOI
ISBN
ISSN
Beiträger
Körperschaft
Erschienen
Halle (Saale), Germany : Halle Institute for Economic Research (IWH), Member of the Leibniz Association, [28. April 2021]
Umfang
1 Online-Ressource (III, 84 Seiten, 2,13 MB) : Diagramme
Ausgabevermerk
Sprache
eng
Anmerkungen
Inhaltliche Zusammenfassung
This article derives a European Herfindahl-Hirschman concentration index from 15 micro-aggregated country datasets. In the last decade, European concentration rose due to a reallocation of economic activity towards large and concentrated industries. Over the same period, productivity gains from reallocation accounted for 50% of European productivity growth and markups stayed constant. Using country-industry variation, we show that changes in concentration are positively associated with changes in productivity and allocative efficiency. This holds across most sectors and countries and supports the notion that rising concentration in Europe reflects a more efficient market environment rather than weak competition and rising market power.
Schriftenreihe
IWH-CompNet discussion papers ; 2021, no. 3 (April 2021) ppn:887996302