Deep Versus Shallow PTAs : Rules Affecting Competition Dynamics–Antitrust, Competitive Neutrality, and Pro-Competition Economic Regulation
Even though many countries have opened to trade, markets in developing economies oftenunderperform due to anticompetitive behavior and restrictive regulatory frameworks by a fewdominant players. Effective competition policies offer a tool to comple...
| Main Authors: | , , , , |
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| Language: | English |
| Published: |
World Bank, Washington, DC
2020
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| Subjects: | |
| Online Access: | http://documents.worldbank.org/curated/en/696871585113557597/Deep-Versus-Shallow-PTAs-Rules-Affecting-Competition-Dynamics-Antitrust-Competitive-Neutrality-and-Pro-Competition-Economic-Regulation http://hdl.handle.net/10986/33551 |
| Summary: | Even though many countries have opened
to trade, markets in developing economies oftenunderperform
due to anticompetitive behavior and restrictive regulatory
frameworks by a fewdominant players. Effective competition
policies offer a tool to complement and support governments’
efforts to reduce barriers to trade. Active competition
among market players has the potential to mitigate vested
interests and facilitate the opening of markets to trade and
investment. Greater competition within national markets
reinforces international competitiveness of potential
exporters through increased incentives to foster
productivity, innovation and efficiency. Additionally,
international trade reinforces competition in national
markets by increasing contestability, entry and rivalry
through increased presence of foreign products, services and
investments. Empirical evidence suggests, for example, that:
(i) the elimination of entry barriers, increased rivalry and
leveling the playing field in upstream sectors contribute to
export competitiveness in downstream manufacturing sectors;
(ii) pro-competition market regulation that reduces
restrictions and promotes competition is an important
determinant for trade; (iii) competition law enforcement can
be traced to export performance and is complementary to
trade reforms; and (iv) industries with more intense
domestic competition will export more. |
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