Competition and Inequality in Developing Countries

Abstract

This paper examines the link between competition policy and inequality, with a specific focus on the impact on inequality of concentration and competitive abuses by firms. In particular, the paper focuses on the role that concentration and a lack of competition have on inequality more generally and specifically within the context of developing countries. Developing countries have contextual factors, such as concentrated product markets and labour markets characterised by high levels of unemployment. 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. The paper concludes by providing some recommendations for how competition law and policy can be used to reduce inequality.