A Concentration Analysis in The Turkish Iron-Steel and Metal Industry

Authors

  • Ferhat Pehlivanoğlu
  • Burcu Yavuz Tiftikçigil

Keywords:

Market Concentration, Competition, Iron Steel and Metal Main Industry Market, M Firm Concentration Rate, Herfindahl-Hirschman Index.

Abstract

Abstract: The industry concentration rate is measured for the purpose of identifying competitive structure of an industry, and if there is an environment of consensus within it. The industry concentration level is inversely correlated to the number of existing companies. The higher the concentration is, the lower the competition becomes, which in turn leads to anti-competitive practices. This study is designed to define the market structure of the Turkish Iron-Steel and Metal Industry. The study uses net sales data from production during the 1995-2001 period, as published by the Istanbul Chamber of Industry for the top first and second 500 industrial organizations. It also analyzes the M Firm Concentration Rate (CRM: CR4, CR8 and CR12) and the Herfindahl-Hirschman Index (HHI) values to define the concentration rate of the market. Result of the study shows that, in the iron-steel and metal industry having a non-concentrated market structure based on the HHI index value, a market structure of monopolistic competition was observed based on the CR4 index value whereas the CR8 and CR12 index values typically led to an oligopolistic market structure, except for some years.

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Published

2013-07-01

How to Cite

Pehlivanoğlu, F., & Yavuz Tiftikçigil, B. (2013). A Concentration Analysis in The Turkish Iron-Steel and Metal Industry. International Journal of Economic Practices and Theories, 3(3), 152-167. Retrieved from http://ijept.eu/index.php/ijept/article/view/A_Concentration_Analysis_in_The_Turkish_Iron-Steel_and_Metal_I

Issue

Vol. 3 No. 3 (2013)

Section

Articles

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