An application of an entropy approach to the Turkish manufacturing industry

Abstract

This study concerns an application of concentration measurement for the Turkish Manufacturing Industry using information theory. Theil's (1971) disaggregation of entropy is converted to handle the whole manufacturing industry in order to see the competitive and monopolistic trends. The between-group variation and within-group variation values are computed for three yearly period between 1989 and 1991 using sales figures. These values give the intersectoral and inter-firm differentiations for the manufacturing industry. The study concludes that the distribution for sales figures within the sector displays a less equal pattern than the intersectoral analysis, although the general relative entropy values shows only a tendency to equal shares for the Turkish Manufacturing Industry.