Diffusion and Adaptation of Competition Policy in Asia

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Diffusion and Adaptation of Competition Policy in Asia (2024.3)

AOKI, Reiko (Commissioner, Japan Fair Trade Commission)
IGARASHI, Toshiko (Director, International Affairs Division, Japan Fair Trade Commission)
KAI, Takayuki (Former Research Associate, Asian Development Bank Institute)
SATAKE, Eri (Former Research Assistant, The University of Tokyo)
SONOBE,Tetsushi (Dean and Chief Executive Officer, Asian Development Bank Institute)
SAWADA, Yasuyuki (Director, Center for Research and Education in Program Evaluation and Professor, Faculty of Economics, The University of Tokyo)
UEDA, Shintaro (Deputy Director, Economic Analysis Office, Japan Fair Trade Commission)

Abstract	File （PDF)
This paper discusses issues regarding the diffusion and adaptation of competition policy in Asia. We test the hypothesis that the increase in the adoption of competition policy was inextricably linked with the growing globalization using cross-country panel data on the enactment of competition law and the budget of competition authorities. Empirical results show: a country tends to enact a competition law before accession to GATT/WTO; market-oriented reforms, triggered by AFC, seem to play a critical role in an adaptation of competition policies; and governance level matters in adopting competition laws and policies. We also discovered a robust correlation between the perceived effectiveness of competition policy and the level of local competition based on novel survey data. The findings in this paper hold significant policy implication for competition policy development in Asia such as early adaptation of competition law, role of market-oriented reforms and governance quality.	CPDP-95-E(PDF:773KB)

Abstract

File （PDF)

　
　This paper discusses issues regarding the diffusion and adaptation of competition policy in Asia. We test the hypothesis that the increase in the adoption of competition policy was inextricably linked with the growing globalization using cross-country panel data on the enactment of competition law and the budget of competition authorities. Empirical results show: a country tends to enact a competition law before accession to GATT/WTO; market-oriented reforms, triggered by AFC, seem to play a critical role in an adaptation of competition policies; and governance level matters in adopting competition laws and policies. We also discovered a robust correlation between the perceived effectiveness of competition policy and the level of local competition based on novel survey data. The findings in this paper hold significant policy implication for competition policy development in Asia such as early adaptation of competition law, role of market-oriented reforms and governance quality.

CPDP-95-E(PDF:773KB)