A PYMNTS Company

Competition Policy: Encouraging Thriving Markets for Development

By  |  October 4, 2013

Posted by D. Daniel Sokol

Markus Kitzmuller, World Bank and Martha Martinez Licetti, World Bank describe Competition Policy: Encouraging Thriving Markets for Development

ABSTRACT: A literature review shows that competition policy reforms allow markets to work more efficiently for the benefit of consumers and drive sustainable economic growth. Three main insights emerge: Greater market competition matters for achieving greater innovation, productivity, and economic growth. Policies that help open markets and remove anti-competitive regulations can promote competition, resulting in lower prices and better deals for consumers and firms. And effective enforcement of competition rules across sectors – rather than the pure existence of competition laws – makes a difference in the impact of competition policies.