THE IMPACT OF THE COMPETITION POLICY ON ECONOMIC DEVELOPMENT IN THE CASE OF DEVELOPING COUNTRIES

Sinisa Milosevic¹, Dejan Trifunovic² and Jelena Popovic Markopoulos¹

¹Commission for Protection of Competition, The Republic of Serbia

²Faculty of Economics, University of Belgrade, Belgrade, The Republic of Serbia

In this paper, we will analyse the impact of the effective application of the competition policy to the economic development of developing countries. Many empirical papers suggest that the existence of the competition policy does not significantly affect the level of the GDP per capita, and that only its effective application is important. We will take the same approach and use the World Economic Forum index as a proxy for the effective application of the competition policy. We will demonstrate that a part of the variations in the GDP per capita between developing countries could be explained by an effective application of the competition policy.

Keywords: competition policy, intensity of competition, economic development, developing countries

JEL Classification: L51, O12