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Effects of Competition Policy on Macroeconomic Outcomes

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  • Hong, Hyung Ju

    (Korea Fair Trade Commission, Sejong, Republic of Korea)

Abstract

This paper examines existing empirical research regarding the importance of competition and competition policy for variables relevant to macroeconomic outcomes. This research provides evidence on the correlations between competition, competition policy, and macroeconomic outcomes, such as productivity, growth, innovation, employment, and inequality. Competition policy is demonstrated to bring multiple benefits for macroeconomic outcomes in several economic studies. Gains from enhanced competition can essentially be divided into efficiency and redistribution effects. Efficiency gains result from the positive impact of competition on productivity growth, which allows firms and industries to produce more and better products and services at lower cost, whereas redistribution effects are associated with the impact of competition on inequality and employment in the market.

Suggested Citation

  • Hong, Hyung Ju, 2022. "Effects of Competition Policy on Macroeconomic Outcomes," Journal of Economic Integration, Center for Economic Integration, Sejong University, vol. 37(2), pages 337-376.
    • Handle: RePEc:ris:integr:0853
    DOI: 10.11130/jei.2022.37.2.337
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    References listed on IDEAS

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    More about this item

    Keywords

    Competition policy; productivity growth; economic equality; employment;
    All these keywords.

    JEL classification:

    • I38 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - Government Programs; Provision and Effects of Welfare Programs
    • J48 - Labor and Demographic Economics - - Particular Labor Markets - - - Particular Labor Markets; Public Policy
    • L44 - Industrial Organization - - Antitrust Issues and Policies - - - Antitrust Policy and Public Enterprise, Nonprofit Institutions, and Professional Organizations
    • O49 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - Other
    • O57 - Economic Development, Innovation, Technological Change, and Growth - - Economywide Country Studies - - - Comparative Studies of Countries

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