Journal
APPLIED ECONOMICS
Volume 36, Issue 1, Pages 1-7Publisher
ROUTLEDGE TAYLOR & FRANCIS LTD
DOI: 10.1080/0003684042000177143
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This manuscript focuses on the productivity-industrial concentration relationship in the US manufacturing industries, while accounting for external and internal sources of knowledge. It is found that there is a critical level of industrial concentration beyond which its relationship with productivity growth becomes negative. Results suggest that static welfare losses of increasing concentration in manufacturing industries can be offset by welfare gains from productivity growth.
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