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Government and industry performance: a comparative study

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  • Keith Hartley
  • Richard White
  • David Chaundy

Abstract

A number of UK industries are heavily dependent on the government as a major purchaser. The Ministry of Defence and the National Health Service are essentially monopsonists for the industries supplying them. As a monopsonist, government can influence the size, structure, conduct and performance of the industries. This paper examines wheather industries relying heavily on government purchases will differ in their structure, conduct and performance-characteristics and whether dependence on goverment can have favourable or adverse effects on industry performance. The hypothesis is tested by comparing the performance of industries dependent on government purchasing - defence, pharmaceuticals and medical equipment - with a control group of other non-dependent industries.

Suggested Citation

  • Keith Hartley & Richard White & David Chaundy, 1997. "Government and industry performance: a comparative study," Applied Economics, Taylor & Francis Journals, vol. 29(9), pages 1227-1237.
    • Handle: RePEc:taf:applec:v:29:y:1997:i:9:p:1227-1237
    DOI: 10.1080/00036849700000013
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    References listed on IDEAS

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    1. Keith Hartley & Todd Sandler, 2003. "The Future of the Defence Firm," Kyklos, Wiley Blackwell, vol. 56(3), pages 361-380, August.
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    Cited by:

    1. Mohamad Rosli & Fatimah Kari, 2008. "Malaysia's National Automotive Policy and the Performance of Proton's Foreign and Local Vendors," Asia Pacific Business Review, Taylor & Francis Journals, vol. 14(1), pages 103-118.
    2. Kari, Fatimah & Jaafar, Abdul H. & Allen, Albert J. & Couvillion, Warren C., 2002. "Market Structure, Market Share, And Profits In The Surface Freight Industry," 2002 Annual meeting, July 28-31, Long Beach, CA 19757, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    3. Antonio Fonfria & Paulina Correa-Burrows, 2010. "Effects Of Military Spending On The Profitability Of Spanish Defence Contractors," Defence and Peace Economics, Taylor & Francis Journals, vol. 21(2), pages 177-192.
    4. Javier Garc�a-Est�vez & Elisa Trujillo-Baute, 2014. "Drivers of R&D investment in the defence industry: evidence from Spain," Defence and Peace Economics, Taylor & Francis Journals, vol. 25(1), pages 39-49, February.
    5. Aidan R. Vining, 2016. "What Is Public Agency Strategic Analysis (PASA) and How Does It Differ from Public Policy Analysis and Firm Strategy Analysis?," Administrative Sciences, MDPI, vol. 6(4), pages 1-31, December.

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