The purposes of this study are to find the determinants of market concentration which is a key element of market structure and to analyze the changing concentration as an exploratory study for analyzing the firm behavior in Korean oligopolistic industry.
The sample of industries used in this study was 192 5-digit industries for which essentially comparable data were available over the period 1975 - 1985.
The results of this study are summarized as follows :
First, generally market concentration is explained mostly by MES (minimum Effect Scale). The effect of MES and initial concentration is significantly positive and negative respectively.
Second, changes in concentration is explained by initial market structure but changes in market structure condition explain more.
Third, the relation between market growth and market concentration is not significant in overall industries, but the association is inverse where concentration is high.
