The effects of competition policy,regulatory quality and trust on inward FDI in host countries

This article develops a comparative institutionalist framework to investigate how pro-enforcement reforms leading to a change in competition policy regimes attracts FDI in host countries, and how this relationship is moderated by the interplay between key formal and informal institutions. We revisit the FDI theory by integrating insights from economics of competition policy and the most recent debate on how institutions matter to international business. We contend that the effectiveness of competition policy enforcement is a crucial factor in attracting FDI, but only in host countries characterized by institutional configurations where the lack of trust is concomitant with a high-quality regulatory institutional environment. Our analysis on a sample of 63 countries followed in the 1980–2017 period supports our hypotheses. This paper contributes to a deeper understanding on the competition policy–FDI relationship at national level and has implications for policy makers.     

Decentralisation of enforcement of EC competition law

Conclusion  As a result of the new Regulation 17, cooperation between competition authorities will become very intensive. The advantages of this development are that enforcement will be more efficient. On the other hand, this offers competition authorities the possibility to learn from each other, seeing that they are all working in the same field. The system of the new Regulation offers a framework for this cooperation but is by no means sufficient. The very limited points discussed in this paper already show that procedures need to be developed which regulate the distribution of work between the different authorities. In addition, the exchange of information should be organised carefully. If this does not happen, the foundations of the cooperation will be very weak. Furthermore, in this connection, a uniform level should be determined for the information which is considered as confidential and is not disclosed to third parties. This means that there is still a great deal to be regulated where the operation of the network is concerned.     

Romanian competition policy

Romania plans to complete its accession negotiations with the EU by the end of 2004 and hopes to join the EU in January 2007. The implementation of an effective competition policy is an essential part of this process. The following article examines Romanian competition policy and compares it to the EU's competition acquis.     

The impact of agricultural price policy in developing countries

Agricultural price policies are under closer review now in many developing countries. There is a growing tendency to rely more on market forces. What impact have agricultural price policies had on the performance of the agricultural sector in developing countries until now?     

Aid policy of the industrial countries

Time and again, and in the more recent past during the UNCTAD Ill-Conference, the less developed countries (LDCs) have found fault with the industrial countries’ declining contribution towards the economic development of the Third World. The question is now whether the future will bring a change of this tendency which has shown itself for a number of years.     

Consumer safety policy in the EFTA countries

In this article, the author briefly outlines the present consumer safety laws in EFTA member countries. It seems that the EFTA countries are well prepared to adapt to the future EC Directive on Product Safety. Further, the author suggests that in the future, information on product safety matters should be diffused in a West European Safety Information Exchange System.     

Financial policy in developing countries

The present financial policies of the developing countries are hardly likely to create favourable conditions for economic growth. A change can only be brought about if the financing of development projects and the imports of consumer goods can be successfully integrated in an overall plan for economic growth and the generation of new sources of revenue for the state.     

Agricultural policy in developing countries

Development failures are less the result of “natural” short-comings, but are caused instead by false conceptions and by the misapplication of experience from highly-developed economic systems to countries in the initial development stage. The following article points out the pit-falls and discusses some alternative strategies.     

Trade policy in developing countries

Development institutions are currently revising their traditional positions on the question of adequate trade policies for developing countries. Against this background the following article takes stock of the degree to which developing countries have become integrated into the world economy and considers the opportunities and risks which the integration process presents. Problems confronting national policies in less successful developing countries are then outlined which make further, efficient integration of these countries into the world economy more difficult. Finally, policies are identified which could ease further integration.     

The EU’s new competition policy standards

In a 2008 article in the EU’s Competition Policy Newsletter, Peter Lowe, Director General of the EU Commission’s Directorate Competition, synthesised the experience of his office with regard to the design of competition policy institutions for the 21st century. A year earlier, he had co-authored another article, appearing in the same venue, recapitulating the Commission’s lessons learned from the Energy Sector Inquiry and the need for effective unbundling of energy transmission networks. The reader of both, at first astounded by the apparent gap between policymaking reality and reflections upon it, soon detects a rather pragmatic approach to shaping regulatory agendas. But are there limits to expediency?     

The drugs economy and anti-drug policy in developing countries

The drugs economy has now developed into a major factor in many developing countries. What effects on the economies of the countries concerned do drugs production and the drugs trade have? How should the prospects of success for substitution policies be judged? What strategy to curb the demand for drugs in the industrial countries might carry the promise of success?     

Developing countries in competition for foreign investment

This study analyzes the competition for foreign direct investment (FDI) among countries at different stages of development. It is assumed that domestic companies in a more-developed country use more capital in production and that wages in a less-developed country are lower. Countries can compete for FDI by increasing the supply of public inputs in the economy, in addition to (or instead of) offering subsidies or tax reliefs to foreign investors. The results reveal that if governments of competing countries are not allowed to discriminate between domestic and foreign firms, there may be situations in which a less-developed economy will attract FDI depending on the labor cost differential and the responsiveness of foreign investor's and domestic companies' output to changes in the supply of public inputs. If tax discrimination between domestic and foreign firms is permitted, both countries will optimally raise the supply of public inputs, but the more-developed country will always win the foreign investment despite higher labor costs. Thus, governments of less-developed countries may have an incentive to work on an international agreement to disallow tax discrimination.     

Regional policy in Third World countries

A great deal would suggest that the process of urbanisation in developing countries leads to both negative allocation effects and to an increase in income inequality between urban and rural districts. Regional policy measures almed at improving the lot of rural areas would seem called for. Which concepts exist on this issue and how are they to be rated?     

The internationalization of competition policy: implications for international business

In the post–Uruguay Round World Trading System and with the creation of the World Trade Organization (WTO), a new set of agendas on the governance of the world economy has emerged. Among them are the relationship between trade and social policy, trade and the environment, and trade and competition policy. These issues are new in the sense that policymakers have, until now, avoided drawing direct‐policy linkages between them. The main reason for this is that traditionally social and competition policies have been domestic policy domains that international policymakers were prevented from influencing. While environmental policy has been subject to several international negotiations, the link between trade and the environment has been relatively under‐discussed in the GATT. Moreover, there have been few international agreements that have drawn a direct link between trade and the environment.¹ The focus of this paper is the relationship between trade and competition policy. In particular, this paper seeks to address the issues related to international competition policy and the concerns and problems faced by international business in this context. ¹ An exception being the agreement on trade in endangered species (CITES). © 2000 John Wiley & Sons, Inc.     

EC policy and developing countries

The EC’s Common Agricultural Policy (CAP) tends to restrict imports of farm produce to that part of demand which is not met by domestic production. The author analyses nature and extent of the problems arising therefrom for the LDCs that are heavily dependent on exports of agricultural goods.