Imports, Entry and Competition Law as Market Disciplines
- Topics:
- Import Export
- Tags:
- Competition Law,
- Finance,
- Free Trade
- Source:
- World Bank Group
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Overview: Since the early 1990s, numerous countries have adopted or strengthened competition legislation. In this article, one investigates the impact of competition law on industry markups over time and across a large number of countries. It finds both domestic and foreign competition to be major sources of market discipline in concentrated markets, but that the direct effect of competition law is insignificant. However, once allowance is made for the endogeneity of both domestic competition and the adoption of a competition law, one finds that competition laws have an indirect effect on equilibrium markups by promoting a larger number of domestic firms.
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Format: PDF | Size: 267KB | Date: Jan 2003 | Pages: 30
