Market structure and industry performance: the case of Kenya

The papsr has two goals. An attempt is made to relate the structural characteristics of industries in Kenya to the performance of industries using the 1963 Census of Industrial Production. Structure is measured by a concentration index, which incorporates the influence of foreign competition, while performance is measured by the difference between average price and average cost, as a percentage of average price. Secondly, the paper brings evidence to bear on the controversy over whether the relationship between performance and concentration is continuous and whether concentration alone partly explains performance or whether barriers to entry exert an independent influence on performance in addition to concentration.