Concentration Ratios and Herfindahl Indices, 1995-2003

The Business Integrated Databse (BID) is a joint Industry Canada and Statistics Canada project. The database only has four elements: the year, the SIC-E (four digit level), the Herfindahl Index at the SCG 4 digit level, and the Herfindahl Index at the SCG 6 digit level.

The Herfindahl Index (HI) is a plant product specialization index. A share of a particular SGC is calculated for each establishment by dividing the production of the SGC by the value of all goods manufactured by the establishment. HIs are the sum of the square of the shares

An index is calculated for each establishment using commodity data, and then the HI values are weighted to the Canada four digit level using manufacturing shipments as the weight. HIs are produced at the 4 digit as well as at the 6 digit SCG level. Both indexes are at the four digit SIC/Canada level of detail.