Diversification and concentration in New Zealand industry∗

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Abstract
This paper seeks to identify broad changes in New Zealand's industrial structure over a period which saw substantial liberalisation of industry and commerce in the country. New data relating to the end of the 1980s confirms a fall in the diversity of New Zealand manufacturing enterprises over the decade. However, the fall in diversity has not been enough to cause a drop in aggregate concentration because of offsetting increases in concentration at the industry level. Overall concentration of business assets is shown to have increased rapidly from 1979 through 1989, even after making some allowance for the fact that many of the largest companies have considerable assets outside of the country. The paper concludes by stressing the crucial linkage between industry structures and export performance and outlines research intentions in this area.