The Impact of State and Foreign Ownership on Post-Transition Industrial Concentration: The Case of Polish Manufacturing

Abstract

This paper reports an analysis of the determinants of the level and changes in Polish industrial concentration in the early post-transition era. The empirical evidence is based on a panel of 144 Polish manufacturing industries over the period 1989-1993. The results suggest that both state and foreign ownership have a significant impact on industry concentration and this relationship is U-shaped. Minimum efficient scale is found to be the only other factor to impact on industry concentration