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Global integration ≠ global concentration

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  • Pankaj Ghemawat
  • Fariborz Ghadar

Abstract

There is a widespread belief that increases in the cross-border integration of markets are associated with increases in global concentration along various dimensions. This article reviews the available evidence and presents new data, indicating that increasing global integration has not been accompanied by general increases in four types of global concentration measures: industry seller concentration, cross-industry superconcentration, national/regional hegemony, and geographic concentration. The article also uses the automobile industry to illustrate a bias toward believing concentration is increasing even when it is not and to discuss possible reasons. Copyright 2006, Oxford University Press.

Suggested Citation

  • Pankaj Ghemawat & Fariborz Ghadar, 2006. "Global integration ≠ global concentration," Industrial and Corporate Change, Oxford University Press and the Associazione ICC, vol. 15(4), pages 595-623, August.
    • Handle: RePEc:oup:indcch:v:15:y:2006:i:4:p:595-623
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    Citations

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    Cited by:

    1. Francesca Di Iorio & Maria Letizia Giorgetti, 2018. "The impact of submarket concentration in the US pharmaceutical industry in 1987-1998," DEM Working Papers Series 163, University of Pavia, Department of Economics and Management.
    2. Dosi Giovanni & Gambardella Alfonso & Grazzi Marco & Orsenigo Luigi, 2008. "Technological Revolutions and the Evolution of Industrial Structures: Assessing the Impact of New Technologies upon the Size and Boundaries of Firms," Capitalism and Society, De Gruyter, vol. 3(1), pages 1-49, June.
    3. Grøgaard, Birgitte, 2012. "Alignment of strategy and structure in international firms: An empirical examination," International Business Review, Elsevier, vol. 21(3), pages 397-407.
    4. Italo Colantone & Kristien Coucke & Leo Sleuwaegen, 2015. "Low-cost import competition and firm exit: evidence from the EU," Industrial and Corporate Change, Oxford University Press and the Associazione ICC, vol. 24(1), pages 131-161.
    5. Chris Carr & Suzanne Bateman, 2009. "International Strategy Configurations of the World’s Top Family Firms," Management International Review, Springer, vol. 49(6), pages 733-758, December.
    6. Prpić, John, 2017. "A Geography of Participation in IT-Mediated Crowds," SocArXiv a7k27, Center for Open Science.
    7. Aguilera, Ruth V. & Flores, Ricardo G. & Vaaler, Paul M., 2007. "Is It All a Matter of Grouping? Examining the Regional Effect in Global Strategy Research," Working Papers 07-0106, University of Illinois at Urbana-Champaign, College of Business.

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