The Australian Government is now operating in line with Caretaker Conventions, pending the outcome of the 2025 federal election.
The rate of entrepreneurship in Australia has been declining since 2005.
This study tests whether a change in the market power could be behind this decline. It introduces a new index of market power to compare industries. It uses a variety of methods to evaluate the impact of the constructed index.
Key findings:
- increasing market power, as expected, is detrimental to firm entry
- market power does not increase in all industries
- changes in market power do not explain the decline in entrepreneurship
- most of the drop in entrepreneurship is attributable to other causes.
Author: Sasan Bakhtiari