Imports, Entry, and Competition Law as Market Disciplines

Download or read book Imports, Entry, and Competition Law as Market Disciplines written by Bernard M. Hoekman and published by World Bank Publications. This book was released on 2003 with total page 36 pages. Available in PDF, EPUB and Kindle. Book excerpt: 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. This paper--a product of Trade, Development Research Group--is part of a larger effort in the group to study the links between trade and competition policies.