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 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.

Bibliographic Details

Main Authors:	Hayri, Aydin, Dutz, Mark A.
Language:	English en_US
Published:	World Bank, Washington, DC 2000-04
Subjects:	ANNUAL GROWTH, ANNUAL GROWTH RATE, ANTI-COMPETITIVE PRACTICES, ANTI-TRUST LAWS, BUSINESS ENVIRONMENT, CAPITAL ACCOUNT, CAPITAL ACCUMULATION, CAUSAL EFFECT, CHAMBERS OF COMMERCE, CIVIL LIBERTIES, COMPETITION POLICY, COMPETITIVE ENVIRONMENT, COMPETITIVENESS, CONSUMER PROTECTION, CORPORATE PERFORMANCE, COUNTRY REGRESSIONS, CROSS-COUNTRY ANALYSIS, CULTURAL CHANGE, DATA AVAILABILITY, DATA COLLECTION, DATA SOURCES, DEPENDENT VARIABLE, DEREGULATION, DEVELOPING COUNTRIES, DEVELOPMENT ]RESEARCH, DEVELOPMENT ECONOMICS, DEVELOPMENT INDICATORS, DEVELOPMENT RESEARCH, DIVERSIFICATION, DUMPING, ECONOMETRICS, ECONOMIC ACTIVITY, ECONOMIC DEVELOPMENT, ECONOMIC GROWTH, ECONOMIC LITERATURE, ECONOMIC STUDIES, ECONOMISTS, EMPIRICAL EVIDENCE, EMPIRICAL LITERATURE, EMPIRICAL STUDIES, EMPIRICAL WORK, EMPLOYMENT, ENDOGENOUS VARIABLES, ENVIRONMENTAL POLICIES, EXOGENOUS VARIABLES, EXPLANATORY VARIABLES, EXPORTS, FINANCIAL DEVELOPMENT, FOSTER COMPETITION, GCR, GDP, GNP, GNP PER CAPITA, GROWTH MODELS, GROWTH PERFORMANCE, GROWTH POTENTIAL, GROWTH RATE, GROWTH RATES, GROWTH REGRESSIONS, GROWTH THEORY, HIGH INFLATION, HUMAN CAPITAL, IMPERFECT COMPETITION, INCOME, INDIVIDUAL COUNTRIES, INEFFICIENCY, INFLATION, INSTITUTIONAL QUALITY, INTERNAL ASSESSMENTS, INTERNATIONAL OPENNESS, INVESTMENT RATES, LDCS, LONG- TERM GROWTH, LONG-RUN GROWTH, LONG-TERM GROWTH, MARKET ECONOMIES, MARKET POWER, NEGATIVE EFFECT, OIL, OPEN ECONOMIES, POLICY ENVIRONMENT, POLICY MEASURES, POLICY RESEARCH, POLICY VARIABLES, POLITICAL ECONOMY, POLITICAL RIGHTS, POPULATION GROWTH, POSITIVE EFFECTS, POST OFFICES, POVERTY REDUCTION, PRICE CONTROLS, PRODUCT MARKETS, PRODUCTIVITY, PRODUCTIVITY GROWTH, PUBLIC POLICY, PUBLIC PROCUREMENT, REAL GDP, REAL GNP, REFORM EFFORTS, REGRESSION ANALYSIS, REGULATORY FRAMEWORK, SIGNIFICANT CORRELATION, SOFT BUDGET CONSTRAINTS, STATE ENTERPRISES, STATE INTERVENTION, STATE-OWNED ENTERPRISES, TECHNOLOGICAL INNOVATION, TERMS OF TRADE, TRADE LIBERALIZATION, TRADE OPENNESS, TRADE POLICIES, UNFAIR COMPETITION, VALUE ADDED, WEALTH COMPETITIVENESS, SECTORAL ASSESSMENT, INNOVATION IN BUSINESS, CROSS-COUNTRY EXPERIENCE, DOMESTIC MARKETS, ANTITRUST LEGISLATION,
Online Access:	http://documents.worldbank.org/curated/en/2000/04/437763/more-intense-competition-lead-higher-growth https://hdl.handle.net/10986/18837
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