Does more intense competition lead to higher growth?

Mark A. Dutz and Aydin Hayri ()

No 2320, Policy Research Working Paper Series from The World Bank

Abstract: 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.

Keywords: Environmental Economics&Policies; Economic Theory&Research; ICT Policy and Strategies; Labor Policies; Decentralization; Economic Theory&Research; Environmental Economics&Policies; ICT Policy and Strategies; Achieving Shared Growth; Governance Indicators (search for similar items in EconPapers)
Date: 2000-04-30
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Citations: View citations in EconPapers (31)

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Working Paper: Does More Intense Competition Lead to Higher Growth? (1999)
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