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Competition Policy as a Driver of Economic Growth

Competition Policy as a Driver of Economic Growth

Journal of Economic Regulation, , Vol. 7 (no. 1),

The paper suggests a concept that in a contemporary economy competition policy becomes a key determinant of economic growth. Different approaches to the study of economic grow are analyzed. A profound and complete review of the relevant literature is made concerning the key problems analysed, including previously elaborated theories and empirical works. This review is done in the context of both academic subjects and various research schools. There made the conclusion that traditional factors of growth in a complex and turbulent post-industrial economy cannot explain many modern phenomena. The typical assumption of free and perfect competition does not work anymore. It is competition policy that could have significant impact on the growth nowadays. The paper contains the results of the original econometric studies aimed at showing the influence of competition and competition policy indicators on GDP growth rate. The results demonstrate statistically significant effects: more competition due to effective competition policy leads to higher growth rates. The recommendations with regard to the Russian competition policy authorities are provided. Actual and urgent problem of economic research based on the investigation of new drivers of economic growth for the Russian economy, usage of contemporary analytical and econometric methods and practical recommendations, these are the main strengths of this paper.

Keywords: competition policy; economic growth.

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