"
Herfindahl indices can be calculated to measure the geographic concentration of foreign direct investment (stocks or flows) between two or more countries, between different sectors of a given country or between different countries in respect of a particular sector."
(Organisation for Economic Co-Operation and Development (OECD),
Measuring Globalisation: OECD Handbook on Economic Globalisation Indicators 2005, visited 2010-06-07)
"The
HHI is used as one possible indicator of market power or competition among firms. It measures market concentration by adding the squares of the market shares of all firms in the industry. Where, for example, in a market five companies each have a market share of 20%, the
HHI is 400 + 400 + 400 + 400 + 400 = 2000. The higher the
HHI for a specific market, the more output is concentrated within a small number of firms. In general terms, with an
HHI below 1000 the market concentration can be characterised as low, between 1000 and 1800 as moderate and above 1800 as high."
(European Commission,
Herfindahl-Hirschmann Index (HHI),
Glossary of terms used in EU competition policy.
Antitrust and control of concentrations, 2002, visited 2010-07-06)
"A concentration index such as the
Herfindahl Index is an inverse measure of the extent of geographic diversification (globalisation)."
(Organisation for Economic Co-Operation and Development (OECD),
Measuring Globalisation: OECD Handbook on Economic Globalisation Indicators 2005, visited 2010-06-07)
