Competition Law and Regulations: Productivity Impacts in Latin American Manufacturing Firms

Sara A. Wong and Marjan Petreski ()
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Sara A. Wong: ESPOL Polytechnic University

Journal of Industry, Competition and Trade, 2026, vol. 26, issue 1, No 9, 41 pages

Abstract: Abstract This paper examines how competition laws and regulations affect manufacturing firms’ productivity in 14 Latin American countries, addressing a notable research gap. Using firm-level panel data from the World Bank Enterprise Surveys and legal indicators from the Comparative Competition Law initiative, the study explores the impact of competition law on total factor productivity (TFP), focusing on mediators such as firm size, proximity to the technological frontier, and institutional context. Employing robust empirical methods, the analysis uncovers a complex relationship between competition law stringency, enforcement, and productivity. While certain legal provisions positively influence productivity—especially when accounting for firm size—stronger enforcement may offset these gains, likely due to higher compliance costs and legal uncertainty. The findings highlight the need for a balanced approach to competition regulation that fosters innovation and growth without overburdening firms. Tailoring policies to industry-specific conditions is critical for promoting fair competition and sustainable productivity improvements.

Keywords: Competition law and regulations; Firm productivity; Enforcement; LAC; K21; L11; O54 (search for similar items in EconPapers)
Date: 2026
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DOI: 10.1007/s10842-026-00469-w

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