Independent Financial Growth For Competition

Competition is found to have a positive impact when considered independently as well as in close relation with these other variables. The researchers argue that this means that the level of competition plays a significant role in its own sense in ensuring that the volumes of production are enhanced. The studies have further shown that neither regulation nor privatization have been able to play a major role in coordination with the level of competition that is found in the market.

The findings of the several authors has pointed to the fact that privatization has a very limited role to play when considered independently and that it has worked well only when it was used with the degree of regulation that could be exercised by such a body. Likewise, regulation was not found to have provided for the expected objectives when it was studied independently and it also proved to be ineffective in the absence of privatization as well. This is widely accepted as in the view that it is not possible to control and regulate whole state-owned and state-run enterprises.

Several authors have maintained that other there exist a close relation between how competition and regulation are the two main factors when it comes to determining the role and success played by the privatization of a sector or economy. The type of ownership, be it state run or government owned was not even considered (rather it was used to support a very small part of the inference and argumentative results) as any state-run business entity is only privatized whenever it is under severe underperformance.

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