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Ekonomik Yaklasim. 2011; 22(80): 39-58


Concentration in Turkish Automotive Sector: An Application on Passenger and Light Commercial Vehicles

Selahattin KAYNAK, Yılmaz Onur ARİ.

Cited by (1)

Abstract
Concentration means that production and pricing are controlled by a few firms in a sector. Number and size of firms which operate in an industry are crucial factors for determining concentration level. The most popular ways to measure the market concentration level are N-Firm Concentration Rate, which is calculated a sum of market shares of the biggest firms in a market, and Herfindahl-Hirschman Index, which is used for determining the uncompetitive behaviors in an industry. In this study concentration level of Turkish automotive sector was analyzed through N-Firm Concentration Rates (CR4 and CR8) and Herfindahl-Hirschman Index. As a result of the analysis, high levels of concentration were seen in domestic passenger cars and domestic light commercial vehicles sectors in CR4, while domestic and imported light commercial sectors in CR8. in Herfindahl-Hirschman analysis, it’s seen that a monopolistic structure obtains in domestic passenger and light commercial vehicles, but low concentration rates in imported passenger and light commercial vehicles. As a result of this situation there is a more competitive structure in imported passenger and light commercial vehicles.

Key words: Concentration, Market Structure, Oligopoly, N-Firm Concentration Rate, Herfindahl-Hirschman Index, Automotive Sector. JEL Classification: D22, D40, D29.



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