COMPETITION POLICY VS. ENTREPRENEURSHIP
COMPETITION POLICY VS. ENTREPRENEURSHIP

Summary/Abstract: What impact does competition policy have on entrepreneurship? An effective competition regime should theoretically facilitate an open, competitive environment in which new market entrants can flourish and give rise to high levels of entrepreneurial activity. But is this really the case? In this paper, we test this argument by investigating whether the presence of a large suite of competition laws, and/or a highly ranked national competition policy, is significantly correlated to high levels of entre¬preneurship. Twenty-one countries were examined, using three existing indices - the Global Entrepre¬neurship Monitor, the Global Competition Review, and the Antitrust Index. Surprisingly, the results indicate that there is no discernible correlation between the level of entrepreneurship and highly ranked competition policy.

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