Market Failures And Public Sector Interventions: A Literature Review On Economic Implications
Dinda Ayu Sintawati, Pricylia Chintya Dewi Buntuang, Wilda , Esra Citra Togatorop

Student of Public Administration Study Program, Faculty of Social and Political Sciences, Tadulako University

Abstract

This article aims to evaluate the impact of public sector interventions in addressing market failures and their economic implications. The research is conducted using a Systematic Literature Review (SLR) approach, which involves collecting and analysing secondary data from various sources, such as journals and related scientific articles. The findings show that market failure is a condition where the market fails to provide market needs efficiently or inequality between producers and consumers. Market failure, which is often caused by monopoly, externalities, and market imperfections, can be addressed through appropriate government policies. Public sector intervention refers to actions or policies taken by the government to regulate in economic or social sectors. The goal of intervention is to improve market efficiency while promoting economic justice. This study concludes that collaboration between government and society is essential in formulating inclusive and sustainable economic policies to ameliorate the negative impact of market failure on the economy. This review aims to analyse the impact of public sector intervention in improving economic conditions affected by market failure, as well as provide an understanding of the role of the public sector in achieving better market efficiency.

Keywords: Market failure, market mechanism, public sector intervention, economic implications, government policy

Topic: Economics