The Role of Competition Policy in the Promotion of Economic Growth

Abstract

This essay discusses the role that competition policy can play in promoting economic growth. The essay begins by outlining the main components of modern antitrust policy. The essay then discusses the major aspects of an economy that contribute to economic growth and shows the ways that competition policy can favorably influence economic growth. Next the essay discusses "industrial policy", as a set of policies that are in contradiction to competition policy and describes the tensions between them. Finally, the paper discusses the role of economics and economists in the development of competition policy in the U.S. and highlights some major advances in U.S. competition policy (to which economics and economists have contributed), which have made competition policy more consonant with economic efficiency (and economic growth); in addition, some potential improvements that could promote the effectiveness of competition policy even further are proposed.