Virtues and Limitations of Product Market Competition : Korean Experience - KDI 한국개발연구원 - 연구 - 보고서
본문 바로가기

KDI 한국개발연구원

KDI 한국개발연구원

SITEMAP

Working Paper Virtues and Limitations of Product Market Competition : Korean Experience 2003.12.31

표지

Series No. 2003-10

Working Paper Virtues and Limitations of Product Market Competition : Korean Experience #경쟁정책

2003.12.31

  • KDI
    성소미
영문요약
Does competition improve economic performance? The conventional argument is that competition drives enterprises to better adapt to their environment and improve their productivity. But the relationship between competition and economic performance has long been controversial.

The positive relation between competition and economic growth is not overwhelming at all either theoretically or empirically. Especially, when the same question is applied for a small open developing country, the relationship between competition and economic performance involves much more complex trade-offs. In this paper, we attempt to examine the relationship between competition and economic performance in the context of Korea’s development process and to draw competition policy implications for Korea and other developing countries.

Was domestic product market competition a major factor in Korea’s economic performance in the last forty years? Korea’s real GDP grew at an average annual rate of more than 7% between 1963 and 2002. However, Korea nurtured large business groups instead of pursuing less concentrated competitive markets, especially through the 1960s and 1970s. Markets in Korea are still dominated by chaebol affiliated companies with highly concentrated structures.

Domestic product competition measured by concentration indicators does not seem to account for much of Korea’s economic performance in the last forty years. It is not certain that other market competition factors such as entry and exit or corporate governance factors such as financial pressure and the role of major shareholders were significant contributing factors in Korea’s economic performance, either. However, there are clues indicating that international competition in export markets and rivalry among chaebols in R&D initiatives have been positive factors in explaining Korea’s economic performance.

Developing countries often take an interventionist approach by encompassing import protection, export promotion, public enterprises, entry licensing and other regulatory controls rather than promoting domestic competition. However, our experience in Korea shows that those seemingly anti-competitive measures may be mostly effective in the early stages of development in the presence of other market pressures such as foreign competition and rivalry among domestic firms.
목차
Ⅰ. Introduction

Ⅱ. Virtues of Competition
 1. Competition Induces Better Economic Performance: Natural Selection Theory
 2. Competition Deters Innovation: Schumpeterian Hypothesis
 3. Non-monotonic Relationship between Competition and Economic Performance
 4. Empirical Studies

Ⅲ. Competition Policy Pursuing the Virtues of Competition
 1. Competition Policy Evolves
 2. Varying Regimes of Competition Policy over Countries and Regions
 3. Efforts of Convergence
 4. Trade Liberalization and Competition Policy
 5. Development and Competition Policy

Ⅳ. Korea's Experience
 1. Dominant Position of Chaebols in Korea
 2. Market Structure
 3. Korea's Economic Performance and the Role of Competition

Ⅴ. Conclusion

Reference
관련 자료 ( 9 )
  • 주요 관련자료
  • 같은 주제자료
공공누리

한국개발연구원의 본 저작물은 “공공누리 제3유형 : 출처표시 + 변경금지” 조건에 따라 이용할 수 있습니다. 저작권정책 참조

담당자
미디어운영팀윤정애 전문연구원 044-550-4450
이 페이지에서 제공하는 정보에 대하여 만족하시나요?
네이버로그인
카카오로그인
보안문자 확인

무단등록 및 수집 방지를 위해 아래 보안문자를 입력해 주세요.

KDI 직원 정보 확인

담당자 정보를 확인해 주세요.

등록완료

소중한 의견 감사드립니다.

등록실패

잠시 후 다시 시도해주세요.

Join our Newsletter

매일 새로운 소식으로 준비된 KDI 뉴스레터와 함께
다양한 정보를 확인하세요.