Research and analysis
Productivity and competition: a summary of the evidence
A report outlining the evidence on the relationship between competition and productivity and how this should affect the CMA’s work.
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This report addresses 2 questions:
- Does stronger competition between firms lead to higher levels of productivity?
- Does competition policy and enforcement lead to stronger competition and therefore higher productivity?
The evidence summarised in the report suggests that increases in competition in a market are often associated with increases in productivity, and that competition policy interventions can therefore improve productivity.
The report also draws out some possible implications of this evidence for the Competition and Markets Authority’s (CMA) work.