Author(s):
1. Sinisa Milosevic, Serbia

Abstract:
At the beginning of the 21st century, transition economies were subjected to new challenges. The main problem was related to maintaining sustainable development during the global economic crisis, which still has effects in many countries around the world. In such circumstances of slow economic growth of global proportions, transitional countries should concentrate more on internal affairs that may affect economic growth and development. The goal of each economy is to deliver the highest standard of living for its citizens. It is determined by the economy’s level of overall productivity in which people live and work. Overall productivity of a certain economy results from productivities of its individual business undertakings. One of the key elements that raise productivity of individual companies is definitely the pressure of competition. The pressure of competition influences those who participate on the market to continually develop their business activities in order to surpass their rivals, improve market positioning and increase profit. In order for competition pressure to exist in a certain economy, a high level of market competition is required including proper implementation of competition policy. The focus of the competition policy is consumer welfare, which also represents the aim of every economy. The question is what and how great the effects are from efficient implementation of competition policy on a certain country’s economic development. In this study, a thorough research of this problem is conducted. We will start from the hypothesis that there is positive influence resulted from efficient implementation of competition policy on economic development in transition economies. Quantitative testing of this hypothesis will be undertaken with the help of correlation and regression analysis. If the hypothesis is correct, it will be a clear signal for transitional countries to direct their attention on efficient implementation of competition policy, because it represents an additional way of raising their economic development. Upon the paper’s introduction, the methodology used in the study is introduced. In the second part of the paper, the goals of competition policy are analyzed including their effects on productivity increase of individual businesses and the economy as a whole. The third part of the paper describes the indicators of economic development and levels of efficient implementation of competition policy for transition economies used in the study. The fourth part is meant to examine the effects that the competition policy has on economic development of transition economies and actual testing of the starting hypothesis will be conducted within these effects. At the end of the study, final remarks are given.

Key words:
competition policy, economic development, transition economies

Date of abstract submission:
25.05.2012.

Number of visits:
555

Conference:
REDETE 2012