Convergence of market concentration: Evidence from czech food processing sectors

Abstract

The aim of the paper is to evaluate the market concentration in the Czech food and beverages industry over the period of 2003-2014, to quantify disparities among particular sectors and to investigate the trend of market concentration. The concept of convergence is applied when investigating the trend in the long term. The market concentration in the Czech food and beverages industry has increased on average. In sectors with relatively low market concentration in 2003, the values of concentration increased more rapidly after 2003. On the contrary, the most concentrated sectors tend to change slowly over time and the concentration in some sectors even declined. On the basis of the absolute B-convergence model estimation, it was concluded that there is a trend for convergence of the market concentration in the long run to one and the same point for all sectors of the industry.