Imports, Entry, and Competition Law as Market Disciplines
Since the early 1990s numerous countries have adopted or strengthened competition legislation. Kee and Hoekman investigate the impact of competition law on industry markups over time and across a large number of countries. They find both domestic a...
| Main Authors: | , |
|---|---|
| Format: | Policy Research Working Paper |
| Language: | English en_US |
| Published: |
World Bank, Washington, DC
2014
|
| Subjects: | |
| Online Access: | http://documents.worldbank.org/curated/en/2003/04/2329624/imports-entry-competition-law-market-disciplines http://hdl.handle.net/10986/18266 |
| Summary: | Since the early 1990s numerous countries
have adopted or strengthened competition legislation. Kee
and Hoekman investigate the impact of competition law on
industry markups over time and across a large number of
countries. They find 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 competiton (number of firms)
and the adoption of a competition law, the authors find that
competition laws have an indirect effect on equilibrium
markups by promoting a larger number of domestic firms. |
|---|