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Effectiveness of Competition Law: A Panel Data Analysis

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  • Kronthaler, Franz

Abstract

The paper explores what macroeconomic factors can tell us about the effectiveness of recently enacted national competition laws. Qualitative evidence suggests that numerous countries fall short in implementing competition law. Furthermore, there seems to be significant differences between countries. To examine what factors might contribute to the explanation of effectiveness of competition law panel regression analysis is used. The results indicate that the level of economic development matters, however the institutional learning curve is also relevant. Furthermore, larger countries should be more concerned with competition advocacy activities than smaller countries and it seems to be the case that the problem of capture of competition law is serious in countries with high levels of corruption.

Suggested Citation

  • Kronthaler, Franz, 2007. "Effectiveness of Competition Law: A Panel Data Analysis," IWH Discussion Papers 7/2007, Halle Institute for Economic Research (IWH).
    • Handle: RePEc:zbw:iwhdps:iwh-7-07
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    References listed on IDEAS

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    1. Cassey Lee, 2007. "Legal Traditions and Competition Policy," Chapters, in: Paul Cook & Raul Fabella & Cassey Lee (ed.), Competitive Advantage and Competition Policy in Developing Countries, chapter 4, Edward Elgar Publishing.
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    5. Bernard Hoekman & Peter Holmes, 1999. "Competition Policy, Developing Countries and the WTO," The World Economy, Wiley Blackwell, vol. 22(6), pages 875-893, August.
    6. Dutz, Mark A. & Vagliasindi, Maria, 2000. "Competition policy implementation in transition economies: An empirical assessment," European Economic Review, Elsevier, vol. 44(4-6), pages 762-772, May.
    7. McChesney, Fred S. & Shughart II, William F. (ed.), 1995. "The Causes and Consequences of Antitrust," University of Chicago Press Economics Books, University of Chicago Press, edition 1, number 9780226556352, December.
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    Cited by:

    1. Mosteanu Tatiana & Romano Oana Maria & Dragoi Ionut, 2012. "The Impact Of Macroeconomic Factors On Competition Policy Effectiveness Within European Union," Annals of Faculty of Economics, University of Oradea, Faculty of Economics, vol. 1(2), pages 483-488, December.
    2. 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.
    3. Kodhelaj, Mimoza & Molla, Jonida, 2010. "Foreign Direct Investments in Albanian Market as part of Global Market and Globalization," MPRA Paper 51657, University Library of Munich, Germany.

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    More about this item

    Keywords

    competition law enforcement; developing and transition countries;

    JEL classification:

    • K21 - Law and Economics - - Regulation and Business Law - - - Antitrust Law
    • L40 - Industrial Organization - - Antitrust Issues and Policies - - - General

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