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The Effects of Competition Policy on Development - Cross-Country Evidence Using Four New Indicators

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  • Stefan Voigt

Abstract

Over the last two decades, many developing countries have introduced competition policies. This paper introduces four new indicators on various aspects of competition laws and competition agencies to make competition policies comparable. These indicators are used to estimate the effects of competition policies and all four contribute at least marginally to explaining differences in total factor productivity. This is also true if developing countries are analysed separately. In addition to the direct effects of competition policy on total factor productivity, an indirect effect is identified: countries scoring high with regard to competition policy suffer less from corruption.

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  • Stefan Voigt, 2009. "The Effects of Competition Policy on Development - Cross-Country Evidence Using Four New Indicators," Journal of Development Studies, Taylor & Francis Journals, vol. 45(8), pages 1225-1248.
    • Handle: RePEc:taf:jdevst:v:45:y:2009:i:8:p:1225-1248
    DOI: 10.1080/00220380902866862
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    1. Ajit Singh, 2006. "Competition and Competition Policy in Emerging Markets: International and Developmental Dimensions," Chapters, in: Philip Arestis & John S.L. McCombie & Roger Vickerman (ed.), Growth and Economic Development, chapter 12, Edward Elgar Publishing.
    2. Krakowski, Michael, 2005. "Competition Policy Works: The Effect of Competition Policy on the Intensity of Competition - An International Cross-Country Comparison," HWWA Discussion Papers 332, Hamburg Institute of International Economics (HWWA).
    3. Krakowski, Michael, 2005. "Competition Policy Works: The Effect of Competition Policy on the Intensity of Competition - An International Cross-Country Comparison," Discussion Paper Series 26259, Hamburg Institute of International Economics.
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