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Original Articles

Concentration trends and profitability in the US manufacturing sector: 1970—84

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Pages 1497-1510 | Published online: 28 Jul 2006
 

Abstract

It has been suggested that the US economy is becoming more concentrated and less competitive. Concentration is also claimed to affect the return and risk of companies. In this paper, using the entropy technique, the concentration index for the manufacturing sector of the US economy has been computed and the concentration trend has been analysed. Furthermore, the impact of concentration on return and risk of manufacturing companies is investigated.

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