The OECD has developed indicators in two policy areas. A competitive product market environment that allows new firms to challenge incumbents, efficient firms to grow, and inefficient ones to exit, can help boost economic growth and living standards.
Two main policy ingredients are necessary for a growth-enhancing competition environment.
- Product market regulation should be set in a way that does not hamper competition and,
- An effective antitrust framework needs to be in place that safeguards a level playing field among firms.