Fourie F.C. v N. and A. Smith. “Concentration, tariff protection, and industrial performance in South Africa” South African Journal of Economics 61, 3 1993.
Gerson J. “The Determinants of Corporate Ownership and Control in South Africa” 1992. DPhil Thesis submitted to the University of California.
Leach D.F. “Absolute vs Relative concentration in Manufacturing Industry 1972-85”. South African Journal of Economics 60, 4. 1992a.
Leach D.F. “Concentration and Profits in South Africa: Monopoly or Efficiency?” South African Journal of Economics 60, 2. 1992b.
An example would be debentures: dividends paid to debenture holders are proportionate to profits, but holders of this stock have no voting powers.
For example, Mineral and Energy Policy Workshop 1994, pp. 15-16.
If these were close to zero, they would indicate that all firms in each sector were roughly equal sized. Since they are all much closer to 1000, they indicate that a few large firms dominate production in most sectors.
Such sectors include beverages, rubber, chemicals, paper, and basic metals.
Furthermore, most South African markets are small relative to the optimal capacity of modern manufacturing plant--South Africa’s GDP is roughly half that of Belgium--so the a small number of suppliers in any given market, especially in the mining sector, is hardly surprising.
For example, Belgium reformed its antitrust legislation in 1993 to make it conform with the EU norm but felt no need to make special provision for the pyramid structures of its corporates. Sweden has been tolerant of monopolies and pyramid structures, especially in agricultural processing and distribution and in finance, but has addressed issues of monopolistic pricing indirectly through trade and capital account reform since the mid-1980s, not through action against pyramids.
This conclusion is supported by South African research, which finds a link between trade protection and concentration. See Fourie and Smith (1993).
GENCOR--South Africa’s second largest mining house--announced an “unbundling” package in May 1994 which was partly motivated by the desire to shed local non mining operations in favor of expanding its foreign mining operations.