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Age, Market Share, and Numbers of Competitors by Size



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Harry G. Broadman - Africa\'s Silk Road China and India\'s New Economic Frontier (2007, World Bank Publications) - libgen.li
Morley, David - The Cambridge introduction to creative writing (2011) - libgen.li
Age, Market Share, and Numbers of Competitors by Size
0 10 20 30 40 micro small medium large very large
year
, %
0 2
4 6
8
number of competitors
avg. age (year)
avg. domestic market share (avg. number of local competitors avg. number of foreign import competitors
Source: World Bank staff.
FIGURE 4.9
Domestic Market Share and Foreign Ownership Share
0 10 20 30 40 50 60 70 80 0
20 40 60 80 100
average domestic market share (%)
average foreign investment
share (%)
Source: World Bank staff.
Note: Each plot represents an individual sector in a country among the four African countries covered by the WBAATI survey.
04-Chap4:04-Chap4 10/8/06 11:24 AM Page 198



BEHIND
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THE
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BORDER
” CONSTRAINTS ON AFRICAN
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ASIAN TRADE AND INVESTMENT FLOWS
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Vertical Dimensions of Competition
Buyer-supplier relations can have prominent effects on domestic competition. There are several dimensions in which competition can be affected.
The survey data suggest an association between the degree of competition on the sales side and on the purchase side (figure 4.10). Firms that face more diversified suppliers of material inputs appear to have less concentration of business customers to whom they sell their products. Similarly,
firms that are more sensitive to price differences among those suppliers (in other words, firms that buy from more competitive input markets) appear to face customers demand that is more sensitive to price changes (that is,
they are selling to more competitive output markets).
A closer look at value chains reveals a deeper dimension of competition in the relationships between buyers and suppliers. Table 4.3 shows that, among the firms surveyed, firms sales are more price sensitive when firms sell unfinished products for further processing by their buyers, such as raw materials or partially assembled products,
than when they sell completely finished products.
17
This is suggests that,
by adding value, products become more differentiated and less homoge-
FIGURE 4.10

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