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Markups and market structure in South Africa: What can be learnt from new administrative data?

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  • Joshua Budlender

Abstract

The South African economy is generally understood to be characterised by high levels of product market concentration and high firm markups. This paper reviews the existing literature and discusses what can be learnt from new administrative firm-level panel data. I present new evidence on South African markups, industrial concentration, and the firm-size distribution, for sectors across the South African economy. I find that conclusions on whether markups are 'high' or 'low' are heavily dependent on the method used, and I show that this is consistent with the prior literature.

Suggested Citation

  • Joshua Budlender, 2019. "Markups and market structure in South Africa: What can be learnt from new administrative data?," WIDER Working Paper Series wp-2019-58, World Institute for Development Economic Research (UNU-WIDER).
    • Handle: RePEc:unu:wpaper:wp-2019-58
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    Keywords

    Markups; Market power; Panel data analysis; Firm-size distribution;
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