Competition Structure of Turkish Pharmaceutical Industry and Concentration Analysis*

Pharmaceutical industry has a quite strategic significance due to its high cost, Including R D work for a long time, being employed outnumber of skilled labour, being a sector that requires advanced technology and related to the health of individuals. In addition, pharmaceutical industry affects all the units of market decision directly or indirectly; positively or negatively. The competitive level of pharmaceutical sector and knowledge of market structure are crucial for the units of decision and policy makers. The purpose of the study is that the concentration level of Turkish pharmaceutical industry and its competitive structure is analyzed by means of n-Firms concentration rates and Herfindahl-Hirschman index. According to CR4 and CR8 it has been found that the Turkish pharmaceutical concentration rate is low in the sector. But, domestic firms of Turkish origin and foreign firms of foreign origin are overrepresented concentration in the pharmaceutical industry, according to CR8 and it is observed that an oligopolistic structure is dominated. Also, according to the HH index, it is found that there is not high concentration rate in the both domestic and import pharmaceutical industry.