Average Domestic Market Share, by Sector and by Country

194
AFRICA
’
S SILK ROAD
:
CHINA AND INDIA
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S NEW ECONOMIC FRONTIER
data, only in South Africa do firms on average appear to be exposed to more foreign import competition than to competition from local rivals. In the other three countries, competition from local rivals appears to be more dominant (figure The reason South African firms appear to face more foreign import competition than local competition is partly related to the fact that there is relatively large representation of large and very large firms in the survey sample from South Africa. The survey data show that larger firms face more import competition than do smaller firms, while smaller firms face more local competitors than do larger firms (figure 4.7). This size-related difference is intuitive because large firms often have relatively greater technological prowess and tend to produce products that are more comparable to the products made by overseas producers.
FIGURE 4.5
Size and Domestic Competition
0 10 20 30 40 50 60
nondurable
percent
domestic market share
(micro, small, and medium)
domestic market share
(large and very large 4
8 12 agriculture and food chemicals construction machinery nonconstruction services non- oil minte rals and metals textiles nond urable agriculture and food chemicals construction machinery nonconstruction services non-oil minte rals and metals textiles

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