Abstract
This paper analyses the changes in industry concentration and their determinants using a sample of 109 New Zealand manufacturing industries. The analysis shows that New Zealand manufacturing industries are more concentrated than those of most other countries. However, there has been a clearly declining trend in industry concentration over time indicating that the efforts taken in the past to enhance domestic competition have produced some favourable results. The analysis supports the hypothesis that economies of scale are a major source of concentration. The other determinants of industry concentration are entry barriers, the size of industry, import competition and foreign ownership of industry.
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