Policy brief: Higher Competition in the Domestic Market – A Way to Boost Aggregate Productivity

How can countries increase their aggregate productivity?

Competition is a good thing not only because of lower prices and larger variety. Higher competition in the domestic market also shifts necessary labour and capital resources from less productive domestic-oriented firms to export-oriented productivity champions. Such firms will make better use of production factors and generate larger output. Thus, simply increasing the level of competition in the domestic market can boost the aggregate productivity of a country.

Read the policy brief by Konstantins Benkovskis, Assistant Professor, Stockholm School of Economics in Riga and Adviser in the Monetary Policy Department, Latvijas Banka, and learn more >


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