The negative effect of monopolistic firms on the economy of developing countries

The study tries to answer the question: Do monopolistic firms have a negative effect on the economy of developing countries? By discussing several articles made to a similar topic in the past, we found the index named The Herfindahl-Hirschman Index (HHI) which shows the level of monopoly in the market of the country. Thus, the GDP per capita of the ten developing countries was compared with the HH index, in order to find the correlation between monopoly and the economy of the countries. After the estimation and discussion of the correlation, the finding showed us that the monopolistic market slows down the development of the economy over a long period.