From a theoretical point of view, a competitive market structure should have a positive effect on economic growth. However, there is an intense discussion over the effects of the intensity of competition for innovation and economic development.
The work presented in this seminar is aimed at evaluating the interaction between competition policy and economic structure in Latin American Countries.
Quantitative analysis enables us to examine the relationship between competition policies and GDP per capita more deeply. Remarkably, while there is a significant and positive correlation worldwide, this is not the case in LACs. A related conclusion is that competition policy alone is not enough to generate sustainable growth. Institutional arrangements need to be strong and credible in order to enforce Competition Law, so that economic agents can see competition as a viable way to allocate resources.
Diego Petrecolla is a Professor at the University of Buenos Aires and the President of GPR Economic Consulting. He is the former President of the Argentina Competition Commission. |
