Competition Policy in Developing Societies
A Tool for Sustained Growth?
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Competition is fundamental to boost productivity and innovation, which in turn is the key driver of sustainable growth and development. A dynamic and competitive environment can result from a different set of competition policies, having an impact over market structure, business behavior, and economic performance. As the author demonstrates, most of these policies are beyond the realm of the traditional toolbox of antitrust regimes. From a development perspective, the impact of institutional reforms on the capability of developing economies to boost total factor productivity should take priori...
Competition is fundamental to boost productivity and innovation, which in turn is the key driver of sustainable growth and development. A dynamic and competitive environment can result from a different set of competition policies, having an impact over market structure, business behavior, and economic performance. As the author demonstrates, most of these policies are beyond the realm of the traditional toolbox of antitrust regimes. From a development perspective, the impact of institutional reforms on the capability of developing economies to boost total factor productivity should take priority over other reforms that have little impact on long-term economic performance. As discussed by the author, there is no single approach, and the adopted policies should reflect domestic deficits and needs, featuring appropriate incentives to economic agents in each institutional context. After all, public policy does not happen in a vacuum, but in a world where second-best solutions become every-day tools.
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