Abstract
ABSTRACT This paper examines the link between competition policy and inequality in developing countries. We outline the theoretical linkages between competition and consumption, ownership, and distribution. We then discuss the specific contextual factors relevant to developing countries, such as concentrated product markets, labour markets characterised by high levels of unemployment, and various political and institutional factors related to competition policy including constraints in competition enforcement. These factors may lead to variation in outcomes relative to those seen in more developed economies. It may also necessitate differences in prioritisation and implementation of competition policies. An assessment of the potential impact of traditional competition enforcement in developing countries as well as newer legislative mechanisms that may impact on inequality are discussed.
Published Version
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