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dc.titleCompetition Law and Regulations: Productivity Impacts in Latin American Manufacturing Firms
dc.contributor.authorWong, Sara
dc.contributor.authorPetreski, Marjan
dc.contributor.orgunitDepartment of Research and Chief Economist
dc.coverageLatin America
dc.date.available2025-01-10T00:01:00
dc.date.issue2025-01-10T00:01:00
dc.description.abstractThis paper investigates the effects of competition laws and regulations on manufacturing firms productivity in Latin American countries (LACs), addressing a gap in existing research. Leveraging firm-level panel data from the World Bank Enterprise Surveys across 14 LAC economies and competition law indicators from the Comparative Competition Law initiative, the study employs total factor productivity (TFP) measures to analyze the effects of competition laws on manufacturing productivity through key mediators: firm size, distance to the frontier, and broader institutional arrangements. Utilizing various empirical methodologies that address potential biases, the findings reveal a nuanced relationship between competition law stringency, enforcement practices, and productivity outcomes across different industries and countries. Results reveal heterogeneous effects of competition law and enforcement on productivity, with certain aspects showing a positive relationship with productivity, particularly when controlling for firm size, while stronger enforcement measures weaken the positive association between competition law and productivity, potentially due to increased compliance costs and legal uncertainty. The study suggests a need for policymakers to strike a balance between regulatory stringency and enforcement in competition to avoid stifling innovation and hindering productivity growth, particularly in industries nearing technological frontiers. Accounting for industry-specific factors are essential for fostering fair competition and market efficiency without unduly burdening businesses.
dc.format.extent66
dc.identifier.doihttp://dx.doi.org/10.18235/0013363
dc.identifier.urlhttps://publications.iadb.org/publications/english/document/Competition-Law-and-Regulations-Productivity-Impacts-in-Latin-American-Manufacturing-Firms.pdf
dc.language.isoen
dc.publisherInter-American Development Bank
dc.subjectCompetitiveness
dc.subjectBusiness Productivity
dc.subjectRegulation
dc.subjectSmall Business
dc.subjectProductivity
dc.subjectIndustry
dc.subjectEconomy
dc.subjectManufacturing Industry
dc.subject.jelcodeK21 - Antitrust Law
dc.subject.jelcodeL11 - Production, Pricing, and Market Structure • Size Distribution of Firms
dc.subject.jelcodeO54 - Latin America • Caribbean
dc.subject.keywordsCompetition law and regulations;Firm productivity;Enforcement
idb.identifier.pubnumberIDB-WP-01645
idb.operationRG-K1198
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