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Competition law in the Asia-Pacific region makes small and medium enterprises poorer without innovation law

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  • Bryane Michael

Abstract

Based on international advice, most countries in the APEC region have now adopted competition laws. The more competition, the better – especially for the small and medium enterprises (SMEs) that most need to compete. Yet, ‘better’ competition laws (as measured by a range of characteristics commonly associated with competition law and policy rankings) may actually hurt trade and growth. In this article, we provide a model of SME competition in the APEC region – and show how innovativeness determines the effectiveness of competition law from international data. We show how countries like Singapore and Hong Kong benefit from competition policy reform – because they already have vigorous innovation policies. For countries with such policies – like Brunei – freer trade and competition could actually hurt GDP growth.

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  • Bryane Michael, 2021. "Competition law in the Asia-Pacific region makes small and medium enterprises poorer without innovation law," Journal of the Asia Pacific Economy, Taylor & Francis Journals, vol. 26(3), pages 506-526, July.
    • Handle: RePEc:taf:rjapxx:v:26:y:2021:i:3:p:506-526
    DOI: 10.1080/13547860.2020.1771821
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