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Weak competition in product markets

Colombia ranks very well in terms of its business environment relative to other Latin American countries (World Bank, 2012). However, productivity growth is hindered by weak competitive pressure in product markets. These may be related to rules of conduct imposed by regulators, entry barriers, and targeted preferential treatment. In the past, politicians have extended favourable tariff and tax treatment and export incentives to sectors and regions with large voter bases, powerful business groups or strong political connections (Eslava and Melendez, 2009). The industrial sectors that benefited most from these privileges over the period 1998-2006 include food products, apparel and textiles, and the flower industry. Because of this, overall productivity is hindered by excessive concentration in certain sectors. For instance, concentration in the mobile phone sector is one of the highest in the world, with an adverse impact on service prices, calling for measures to increase the competition among mobile operators (Jullien et al., 2010).

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Competition and Product Market Governance in Developing Countries
In this section, we argue that product market governance systems can be analysed as the articulated bodies of formal or informal rules (product market regulation, including trade and investment regulations, business rules) and policies (taxation, infrastructure provision, direct state intervention on...
(The Diversity of Emerging Capitalisms in Developing Countries: Globalization, Institutional Convergence and Experimentation)
Assessing Competition and Product Market Governance
As explained in the previous section, the measurement of product market institutions represents a difficult challenge, both because data is scarce for developing countries, and because the dimensions and forms of these institutions vary widely. Whereas some countries, like Chile or East European former...
(The Diversity of Emerging Capitalisms in Developing Countries: Globalization, Institutional Convergence and Experimentation)
Models of Competition and Product Market Governance
Main Dimensions of Competition and Product Market Governance Differentiation Since all 13 variables are quantitative, Principal Component Analysis (PCA) has been used in our empirical analysis. Initially, PCA was processed on these 13 active variables. Then, additional categorical variables, describing...
(The Diversity of Emerging Capitalisms in Developing Countries: Globalization, Institutional Convergence and Experimentation)
Main Dimensions of Competition and Product Market Governance Differentiation
Since all 13 variables are quantitative, Principal Component Analysis (PCA) has been used in our empirical analysis. Initially, PCA was processed on these 13 active variables. Then, additional categorical variables, describing a country’s geographical localization, Human Development Index (HDI) level...
(The Diversity of Emerging Capitalisms in Developing Countries: Globalization, Institutional Convergence and Experimentation)
The Four Models of Competition and Product Market Governance
In the previous subsection, PCA has provided information about the patterns of correlation between the 13 variables used to describe competition governance systems. Country’s distribution on the first factorial plan is reported in Fig. 6.3. A further step has consisted in implementing a mixed classification...
(The Diversity of Emerging Capitalisms in Developing Countries: Globalization, Institutional Convergence and Experimentation)
Product Market and Competition
Eric Rougier The effect of competition on economic development is a rather problematic issue. Although it is generally considered that more competition enhances market and firm efficiency, E. Rougier (*) GREThA, CNRS Research Unit, PESSAC CEDEX, France © The Author(s) 2017 155 E. Rougier,...
(The Diversity of Emerging Capitalisms in Developing Countries: Globalization, Institutional Convergence and Experimentation)
Product Market
The product market represents the purchases of finished goods and services in an economy. Households are the main buyers of goods and services in the product market, and businesses are the sellers of goods and services, as shown in the top half of Figure 2.3. From the circular flow model, it appears...
(Deciphering Economics: Timely Topics Explained)
Products and Services for “Good-Enough” Product Markets
China is an economic giant that has overtaken Japan to become the world's second largest economy. However, China's population is ten times that of Japan, and the per capita GDP is approximately USD 5,000 or one-tenth that of Japan. On average, the standard of living in China is still low, requiring products...
(Global Business Strategy)
Product market reforms to boost productivity growth and living standards
Product market competition is weak in many sectors in Mexico, and this often hurts efficiency, productivity and consumer welfare. State-owned monopolies provide and distribute electricity and produce oil, but concentration is high in many other sectors. analysis conducted jointly by the Mexican competition...
(Getting it right : strategic agenda reforms in Mexico.)