Abstract

http://ssrn.com/abstract=1434226
 
 

References (64)



 
 

Citations (1)



 


 



Competition Politics: Interest Groups, Democracy, and Antitrust Reform in Developing Countries


Stephen J. Weymouth


Georgetown University - Department of Strategy/Economics/Ethics/Public Policy

May 8, 2009

CELS 2009 4th Annual Conference on Empirical Legal Studies Paper

Abstract:     
This paper examines the political origins of business regulation. Specifically, I study the influence of interest groups on regulatory reform using a new dataset of competition (or antitrust) enforcement agencies in 155 developing countries. I extend existing research highlighting the effects of competition on prices in product markets by considering the labor market implications of antitrust. The analysis predicts cross-class coalitions with contending regulatory preferences. An alliance of incumbent producers and affiliated labor (“insiders”) opposes competition policies that threaten its existing rents. A pro-competition coalition of consumers, unorganized workers, and entrepreneurs (“outsiders”) favors the price and employment effects of antitrust enforcement. I argue that governments’ commitments to competition policy reflect the congruence of interests among economic insiders and the electoral incentives present in democracies. Consistent with the argument, I find that organized insiders slow the reform process and significantly weaken governments’ commitments to regulatory effectiveness. Democracy exudes offsetting effects: while it favors outsiders on average, it also appears to facilitate the capture of regulatory institutions by powerful interest groups.

Number of Pages in PDF File: 39

Keywords: Competition Policy, International Political Economy, Political Institutions, International Business, Rent-Seeking, Antitrust

working papers series





Download This Paper

Date posted: July 17, 2009 ; Last revised: January 7, 2013

Suggested Citation

Weymouth, Stephen J., Competition Politics: Interest Groups, Democracy, and Antitrust Reform in Developing Countries (May 8, 2009). CELS 2009 4th Annual Conference on Empirical Legal Studies Paper. Available at SSRN: http://ssrn.com/abstract=1434226 or http://dx.doi.org/10.2139/ssrn.1434226

Contact Information

Stephen J. Weymouth (Contact Author)
Georgetown University - Department of Strategy/Economics/Ethics/Public Policy ( email )
Washington, DC 20057
United States
HOME PAGE: http://faculty.msb.edu/sw439/

Feedback to SSRN


Paper statistics
Abstract Views: 918
Downloads: 238
Download Rank: 75,697
References:  64
Citations:  1

© 2014 Social Science Electronic Publishing, Inc. All Rights Reserved.  FAQ   Terms of Use   Privacy Policy   Copyright   Contact Us
This page was processed by apollo1 in 0.312 seconds