A multipurpose cooker is displayed during the Vancouver Fall Home Show at the Vancouver Convention Centre in Vancouver, British Columbia, Canada, on Sept. 28, 2023. (Photo by Liang Sen/Xinhua)
The largest firms in industries are being less and less challenged by their smaller competitors and fewer firms have entered industries overall, suggesting many industries have become less dynamic.
OTTAWA, Oct. 19 (Xinhua) -- Canada's competitive intensity has fallen over the years, the country's Competition Bureau said on Thursday.
Publishing the findings of an in-depth study, "Competition in Canada from 2000 to 2020: An Economy at a Crossroads," the bureau said it tracked a decline in Canada's competitive intensity over the last two decades.
According to the bureau, the study is the first of its kind in Canada to provide a comprehensive analysis of indicators of competition across the Canadian economy, including concentration, industry dynamism, and profits and markups.
The bureau determined that concentration rose in the most concentrated industries, and the number of highly concentrated industries increased.
The largest firms in industries are being less and less challenged by their smaller competitors and fewer firms have entered industries overall, suggesting many industries have become less dynamic, the bureau said.
Profits and markups have both risen overall, and these increases were generally greater for firms already earning higher profits and markups, the bureau added.
"Our findings further highlight the need to modernize Canada's competition laws and adopt a whole-of-government approach to promote competition," Commissioner of Competition Matthew Boswell said, adding that without the adoption of pro-competitive policies, Canada risks continuing down the road of declining competitive intensity.
Taking action to increase competition will drive lower prices and make life more affordable for Canadians, Boswell said. ■
