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Product market concentration dynamics over the COVID-19 pandemic period

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  • Ana Cristina Soares
  • Tiago Ferreiro
  • Inês Lindoso

Abstract

This study investigates the impact of the COVID-19 pandemic shock on product market concentration. In particular, we examine the effect on indicators such as the Concentration Ratio (CK) for the 4 and 20 largest firms and the Herfindahl-Hirschman Index (HHI) computed at narrowly defined industries using firm revenues and their corresponding employment. We use representative firm-level data for Portugal from 2010 to 2021 and show that the COVID-19 pandemic period was not associated with a pervasive rise in product market concentration. In fact, we find that industries adjusted heterogeneously over this period. This result is consistent across product market indicators and regardless of whether we use firm employment or revenue based indicators.

Suggested Citation

  • Ana Cristina Soares & Tiago Ferreiro & Inês Lindoso, . "Product market concentration dynamics over the COVID-19 pandemic period," Economic Bulletin and Financial Stability Report Articles and Banco de Portugal Economic Studies, Banco de Portugal, Economics and Research Department.
    • Handle: RePEc:ptu:bdpart:r202402
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    File URL: https://www.bportugal.pt/sites/default/files/documents/2024-01/RE202402_en.pdf
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    References listed on IDEAS

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