By Leslie Hannah
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Additional info for Concentration in Modern Industry: Theory, measurement and the U. K. experience
This is partly explained by industrial composition: in particular large companies are strongly represented in food, drink and tobacco industries in which both large and small firms export relatively little. Nevertheless the breakdown by industry still suggests that any relationship between size and exports is negative rather than positive. This is not very favourable to the view that size, profitability and technical superiority are associated. It does not, however, support the view that large firms are exerting monopoly power by restricting supply to the domestic market (or any other plausible theory we can construct.
This latter enterprise comes close to having negative value added and should probably be more appropriately regarded as a form of social security than a commercial activity. The showpiece of government intervention in industry has been its creation of a major British capacity in aluminium smelting (Graham 1972, Dell 1973). This was established with the aid of substantial government grants and long-term contracts for the purchase of cheap electricity. The results have been somewhat variable. , the consortium leader, has stated that it 'is still a very worrying problem' (Chairman's statement, 21st May 1975).
In particular, is rarely able to arrive at a consensus among its members, far less to impose a view thus arrived at on a reluctant government. These developments may be mistaken for, or may indeed become, moves subversive of formal democratic procedures. There are certainly dangers and they are aggravated by the growth of industrial concentration, but we are not persuaded that they have yet become a major political problem. Even if we doubt the imminence of the corporate state, there remain many important respects in which political values are shaped by the economic organisation of society.