Cross-Cutting Competition Issues in Regional Industrial Development

45 Pages Posted: 18 Jan 2018

See all articles by Mark Burke

Mark Burke

Centre for Competition, Regulation & Economic Development (CCRED)

Tamara Paremoer

Centre for Competition, Regulation & Economic Development (CCRED)

Thando Vilakazi

Centre for Competition, Regulation & Economic Development (CCRED)

Tatenda Zengeni

Centre for Competition, Regulation & Economic Development (CCRED)

Multiple version iconThere are 2 versions of this paper

Date Written: October 1, 2017

Abstract

This paper examines the competition law enforcement record of nine authorities in southern Africa over a three-year period (2014-2016), including the main sectors and conduct identified in cases handled by different authorities. The information on cases is considered in the context of regional industrial development and integration, and recent research on regional value chains in southern Africa, highlighting the key challenges of competition law enforcement and the primary resource, institutional and legislative constraints faced by authorities. Drawing from publically available sources and data collected through detailed interviews with competition authorities, the paper finds that although firms are playing an important role in the process of economic integration of the region, control and abuse of market power in different value chains undermine efforts to develop domestic producers and suppliers capable of integrating into wider value chains. This paper sheds light on the inter-relationship between competition and industrial policy in regional integration, and the role, capacities and practical challenges of competition authorities in this regard. It argues that the SADC Regional Industrialisation Roadmap should incorporate concrete measures to increase the capacity of competition authorities to deal with anticompetitive conduct, and that competition law enforcement, given significant constraints, should be considered in conjunction with other interventions to lower barriers and support entry of new rivals in different sectors.

Keywords: development, integration, value chain, competition

JEL Classification: D40, K21, N17, F1

Suggested Citation

Burke, Mark and Paremoer, Tamara and Vilakazi, Thando and Zengeni, Tatenda, Cross-Cutting Competition Issues in Regional Industrial Development (October 1, 2017). CCRED Working Paper No. 20, Available at SSRN: https://ssrn.com/abstract=3103594 or http://dx.doi.org/10.2139/ssrn.3103594

Mark Burke

Centre for Competition, Regulation & Economic Development (CCRED) ( email )

5 Sturdee Ave
Johannesburg, GP, 2196
South Africa

Tamara Paremoer

Centre for Competition, Regulation & Economic Development (CCRED) ( email )

5 Sturdee Ave
Johannesburg, GP, 2196
South Africa

Thando Vilakazi (Contact Author)

Centre for Competition, Regulation & Economic Development (CCRED) ( email )

6 Sturdee Ave
Johannesburg, GP, 2196
South Africa

Tatenda Zengeni

Centre for Competition, Regulation & Economic Development (CCRED) ( email )

5 Sturdee Ave
Johannesburg, GP, 2196
South Africa

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