Imports, Entry and Competition Law as Market Disciplines

Hiau Looi Kee
Authors registered in the RePEc Author Service: Bernard Hoekman

No 3777, CEPR Discussion Papers from Centre for Economic Policy Research

Abstract: Since the early 1990s, numerous countries have adopted or strengthened competition legislation. In this Paper we investigate the impact of competition law on industry markups over time and across a large number of countries. We 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. Once allowance is made for the endogeneity of both domestic competition (number of firms) and the adoption of a competition law, however, we find that competition laws have an indirect effect on equilibrium markups by promoting a larger number of domestic firms.

Keywords: Competition law; Import penetration; Domestic entry; Industry markup (search for similar items in EconPapers)
JEL-codes: F12 F13 L11 (search for similar items in EconPapers)
Date: 2003-02
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (19)

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Related works:
Journal Article: Imports, entry and competition law as market disciplines (2007)
Working Paper: Imports, entry, and competition law as market disciplines (2003)
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