COMPETITION POLICIES AND MICRO, SMALL AND MEDIUM ENTERPRISES (MSMES) GROWTH IN DEVELOPING COUNTRIES: INCENTIVES OR BARRIERS?

Year 2017, Volume: 1 Issue: 1, 1 - 19, 15.03.2017

Samar Abdelmageed

https://doi.org/10.24954/mjecon.2017.0

Abstract

The main aim of this paper is to examine the
impact of competition policies on promoting Micro, Small and Medium Enterprises
(MSMEs) in the developing countries. The business freedom index and trade
freedom index are used as proxies for competition policies in different
countries whereas data on the growth of SMEs are extracted from World
Enterprise Surveys. Panel data analysis is mainly employed to assess the impact
of competition policies on the evolvement of SMEs in the developing countries.
Results show that competition does not currently support small and medium
enterprises in the developing countries to grow and highlight the need to
formulate more comprehensive competition policies not just laws to support
MSMEs.

Keywords

Competition Policies, Micro Small And Medium Enterprises, Business Freedom Index, Trade Freedom Index, World Enterprise Surveys, Developing Countries

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