The Philippines must implement an effective competition policy and law to facilitate a competitive environment for business, according to an economist.
Dr. Gilbert Llanto, president of the government think tank Philippine Institute of Development Studies (PIDS) said that competition in domestic markets through both inter-firm rivalry and entry of firms is positively associated with higher rates of growth in gross domestic product (GDP) per capita.
"Investment - both domestic and foreign - plays an important role in this process,” he said during the 40th Philippine Business Conference and Expo.
Llanto said an effective competition policy fosters inter-firm rivalry and entry by preventing anticompetitive practices and promoting competition.
He also underscored the need for competition law that addresses both private sector restrictive business practices and public policies that unnecessarily impede competition.
Citing experiences of other countries, Llanto discussed the adverse effects of anti-competitive practices, such as cartels, on their industries.
Llanto said the country currently has no unified law or enforcement regime that deals with all of the anti-competitive behaviors that may impact consumers.
"(Competition policy) encourages innovation, greater productivity leading to benefits to the consumer: lower prices, better quality of goods and services, wider choice for consumers,” he added.
Llanto said greater productivity and competitiveness lead to industrial growth and jobs and better access to services.//
