Inter-American Development Bank (2026). CompeteLAC Dataset: A Tool for Competition and Development. IDB Open Data. https://doi.org/10.60966/ty9knh84

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What is CompeteLAC and what are its primary uses?

CompeteLAC is an initiative of the Inter-American Development Bank that harmonizes firm-level data to measure market competition across Latin America and the Caribbean. It provides comparable indicators on market concentration, business dynamics, performance, and market power. Policymakers and analysts use it to evaluate competition trends, identify structural barriers, and design reforms that foster productivity and inclusive growth.

How does market competition drive economic growth in Latin America?

The dataset shows that competitive markets are associated with higher firm-level productivity and more dynamic business entry and exit. By reducing concentration and market power, competition enhances resource allocation, encourages innovation, and supports long-term economic growth.

Why is competition policy crucial for reducing inequality in Latin American countries?

CompeteLAC indicators reveal that high market concentration often limits job creation and wage growth. Stronger competition frameworks can reduce inequality by opening markets to SMEs, improving consumer choice, and lowering prices in essential sectors.

How does the competition of law enforcement in Brazil vs. Mexico compare?

CompeteLAC data highlights differences in enforcement intensity: Brazil’s CADE has historically pursued more cases of market concentration, while Mexico’s COFECE faces challenges in sectors with entrenched monopolies. These variations affect how effectively competition translates into productivity gains.

What are the challenges for SMEs competing against monopolies in Latin American emerging markets?

Indicators on firm size distribution show SMEs face structural barriers such as limited access to finance, regulatory capture, and high entry costs. These constraints reduce their ability to compete with dominant firms, reinforcing market concentration.

What is the relationship between antitrust enforcement and sustainable development in Latin America?

The dataset links enforcement of competition laws with broader development outcomes. Strong antitrust action reduces market power, which in turn supports sustainable growth by encouraging innovation, lowering consumer costs, and fostering inclusive market participation.

How do state-owned enterprises affect private sector competition in Latin America?

CompeteLAC data shows that in sectors with large state-owned enterprises, private firms often face reduced market share and limited pricing power. This can dampen competition unless regulatory frameworks ensure a level playing field.

How does market concentration in Latin America impact inequality and job creation?

High concentration levels, measured by indicators like the Herfindahl-Hirschman Index, correlate with fewer firms and reduced employment growth. Concentrated markets tend to favor incumbents, limiting opportunities for new entrants and contributing to inequality.

How does market concentration hinder technological adoption and firm-level productivity in Latin America?

The dataset reveals that firms in highly concentrated sectors adopt new technologies at slower rates. Market power reduces competitive pressure to innovate, which constrains productivity improvements across industries.

How is the competition in telecommunications and its effects on digital inclusion and economic development in Latin America?

CompeteLAC indicators show that greater competition in telecom leads to lower prices and wider broadband penetration. This supports digital inclusion, enabling SMEs and households to access online markets and services, which in turn boosts economic development.