Synthesis documents

U. of Manchester, Regulation, Competition and SMEs in Developing Countries, 2001

    This paper, number 10 in a series of working papers published by the Centre on Regulation and Competition at the University of Manchester, traces the channels through which regulation and competition affect SMEs in developing countries. Regulation takes different forms, which can be grouped into three major categories: 1.) economic/structural, 2.) social, 3.) administrative. Regulatory policies aimed at developing other sectors of an economy often have an unintended negative impact on SMEs. Also, SMEs are disproportionately affected by regulation because the cost of regulatory compliance does not increase in proportion to firm size. Despite the many way in which regulation affects SMEs, little is known about the interrelationship between regulation, competition and SMEs in developing countries. Further research and hypothesis testing is required.

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