The economic impact of competition - Article - ODI Project Briefings 42 published by ODI and DFID

How do government policies and business practices affect the degree of competition in a given market? How does competition, in turn, affect market outcomes, such as prices, innovation and access to services? With funding from the UK Department for International Development, ODI has compared economic performance in four product markets – sugar, cement, beer and mobile phone services – across Bangladesh, Ghana, Kenya, Viet Nam and Zambia. These countries have very different policy frameworks and competition climates, and the study shows this has a significant impact on competition, market outcomes, and economic performance in the different countries. Here we look at the findings for each product market in turn, then discuss broader conclusions on the role of competition.