Last Updated: 2025-09-18
The Market Concentration measure provides a critical assessment of the economic landscape across various countries by utilizing the Herfindahl-Hirschman Index (HHI). This index evaluates the concentration of market power within a country by focusing on the revenues of the largest five firms. By measuring the extent to which these firms dominate their respective markets each year, the index offers valuable insights into the competitive dynamics and economic health of a nation.
A higher HHI value indicates a significant concentration of market power, suggesting that a few firms hold a majority of market share. This can have profound implications for competition, pricing, consumer choice, and regulatory policies. Conversely, a lower HHI suggests a more competitive market environment where numerous firms can thrive, fostering innovation and consumer benefits.
This measure is particularly useful for policymakers and regulators who monitor antitrust and competition issues to ensure fair market practices. It also aids investors and business strategists in understanding the market structure, assessing risks, and making informed decisions regarding entry or expansion in specific markets.
Covering 129 countries from 2007 to 2019, this dataset provides a comprehensive overview of how market concentration has evolved over time, offering a macroeconomic view of trends that influence global economic strategies and policies.
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