Does More Intense Competition Lead to Higher Growth?
The relationship between the intensity of competition in an economy and its long-run growth is an open question in economics. Theoretically, there is no clear-cut answer. Empirical evidence exists, however, that in some sectors more competition lea...
| Main Authors: | , |
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| Format: | Policy Research Working Paper |
| Language: | English en_US |
| Published: |
World Bank, Washington, DC
2014
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| Subjects: | |
| Online Access: | http://documents.worldbank.org/curated/en/2000/04/437763/more-intense-competition-lead-higher-growth http://hdl.handle.net/10986/18837 |
| Summary: | The relationship between the intensity
of competition in an economy and its long-run growth is an
open question in economics. Theoretically, there is no
clear-cut answer. Empirical evidence exists, however, that
in some sectors more competition leads to more innovation,
and accelerates productivity growth. To complement those
findings, and capture economy-wide effects, the authors
conduct a cross-country study. They examine the impact on
growth of various measures having to do with intensity of
domestic competition - beyond the effects of trade
liberalization. Their results indicate a strong correlation
between long-run growth, and effective enforcement of
antitrust, and competition policy. |
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