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Endogenous Antitrust: Cross-Country Evidence on the Impact of Competition-Enhancing Policies on Productivity

Author

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  • Joan-Ramon Borrell

    (University of Barcelona)

  • Mara Tolosa

    (University of Barcelona)

Abstract

This paper presents empirical evidence regarding the effect of simultaneous antitrust and trade policy on productivity. We find that treating antitrust across countries as an exogenous policy overestimates the impact of competition on productivity by as much as 18%.

Suggested Citation

  • Joan-Ramon Borrell & Mara Tolosa, 2005. "Endogenous Antitrust: Cross-Country Evidence on the Impact of Competition-Enhancing Policies on Productivity," Industrial Organization 0504010, University Library of Munich, Germany.
    • Handle: RePEc:wpa:wuwpio:0504010
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    References listed on IDEAS

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    1. Edward L. Glaeser & Andrei Shleifer, 2003. "The Rise of the Regulatory State," Journal of Economic Literature, American Economic Association, vol. 41(2), pages 401-425, June.
    2. Duso, Tomaso & Roller, Lars-Hendrik, 2003. "Endogenous deregulation: evidence from OECD countries," Economics Letters, Elsevier, vol. 81(1), pages 67-71, October.
    3. Persson, Torsten & Tabellini, Guido, 1999. "Political economics and macroeconomic policy," Handbook of Macroeconomics, in: J. B. Taylor & M. Woodford (ed.), Handbook of Macroeconomics, edition 1, volume 1, chapter 22, pages 1397-1482, Elsevier.
    4. Tomaso Duso, 2005. "Lobbying and regulation in a political economy: Evidence from the U.S. cellular industry," Public Choice, Springer, vol. 122(3), pages 251-276, March.
    5. Dutz, Mark & Hayri, Aydin, 1999. "Does More Intense Competition Lead to Higher Growth?," CEPR Discussion Papers 2249, C.E.P.R. Discussion Papers.
    6. Robert E. Hall & Charles I. Jones, 1999. "Why do Some Countries Produce So Much More Output Per Worker than Others?," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 114(1), pages 83-116.
    7. Ai, Chunrong & Sappington, David E M, 2002. "The Impact of State Incentive Regulation on the U.S. Telecommunications Industry," Journal of Regulatory Economics, Springer, vol. 22(2), pages 133-159, September.
    8. Torsten Persson & Guido Tabellini, 2005. "The Economic Effects of Constitutions," MIT Press Books, The MIT Press, edition 1, volume 1, number 0262661926, April.
    9. Besley, Timothy & Case, Anne, 2000. "Unnatural Experiments? Estimating the Incidence of Endogenous Policies," Economic Journal, Royal Economic Society, vol. 110(467), pages 672-694, November.
    10. Jeffrey A. Frankel & David Romer, 1996. "Trade and Growth: An Empirical Investigation," NBER Working Papers 5476, National Bureau of Economic Research, Inc.
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    Citations

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    Cited by:

    1. Joan-Ramon Borrell & Juan Luis Jiménez & Carmen García, 2014. "Evaluating Antitrust Leniency Programs," Journal of Competition Law and Economics, Oxford University Press, vol. 10(1), pages 107-136.
    2. Kelly Benetatou & Yannis Katsoulacos & Ekaterini Kyriazidou & Galateia Makri, 2020. "Competition policy and labor productivity growth: some new evidence," Empirical Economics, Springer, vol. 58(6), pages 3035-3076, June.
    3. Ma, Tay-Cheng, 2010. "Competition authority independence, antitrust effectiveness, and institutions," International Review of Law and Economics, Elsevier, vol. 30(3), pages 226-235, September.
    4. Majah-Leah Ravago & James Roumasset & Arsenio Balisacan, 2021. "Adapting Competition Law and Policy for Economic Development: Asian Illustrations," Working Papers 202103, University of Hawaii at Manoa, Department of Economics.
    5. Tay-Cheng Ma, 2012. "Legal tradition and antitrust effectiveness," Empirical Economics, Springer, vol. 43(3), pages 1263-1297, December.
    6. Majah-Leah V. Ravago & James A. Roumasset & Arsenio M. Balisacan, 2021. "Adapting Competition Law and Policy for Economic Development with Asian Illustrations," Department of Economics, Ateneo de Manila University, Working Paper Series 202103, Department of Economics, Ateneo de Manila University.

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    More about this item

    Keywords

    Antitrust; Productivity; Political economy;
    All these keywords.

    JEL classification:

    • D7 - Microeconomics - - Analysis of Collective Decision-Making
    • L4 - Industrial Organization - - Antitrust Issues and Policies
    • O4 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity

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