قياس التركيز الصناعي في المملكة العربية السعودية (1395-1407 هـ)‎

Abstract EN

Industrial Concentration is expected to play and increasing role in the industrial development of Saudi Arabia in the future, now that the basic foundations of industrialization where established.

The significance of industrial concentration stems from its effect on vital economic and social welfare indicators like price level.

Productive efficiency, technical progress, employment and distribution of income.

This paper attempts to study the phenomenon of industrial concentration in Saudi Arabia during the period 1395-1407 A.H.

It starts by explaining the concept of concentration and the problems associated with the measurement of absolute and relative concentration as will as a brief review of the most renowned indexes of measurement in the literature.

Hefindahl index was chosen as the most suitable for the measurement of concentration in the Saudi industries based on the data for licensed productive (4-digit) factories published by the ministry of industry and electricity.

According to the result of measurement, industries were classified into concentrated (0.70 concentration degree and above) less-concentrated ones.

Conclusions were finally drawn about the characteristics of concentrated industries and reasons of high concentration like high scale production, capital intensity and restrictions on entry by prospective firms.