Robert E. Kennedy
Harvard Business School (700075-PDF-ENG)
November 25, 1999
Economic liberalization programs often lead to dramatic changes in the structure of the industry. This note contains excerpts from various research articles that summarize the findings on the development of industries after abrupt political reforms. The note is divided into seven sections. The first introduces the concept of competitive shocks and briefly analyzes its prevalence. The following sections analyze typical patterns of industry transformation, entry and exit, changes in concentration levels, and changes in foreign presence (defined as imports plus sales of foreign-owned assets).
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