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Competition policy in the new wave of global protectionism. Prospects for preserving a fdi-friendly institutional environment

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  • Sergio Mariotti

    (Politecnico di Milano)

Abstract

By its very nature, competition policy has a double face vis-à-vis foreign direct investment (FDI), as it can encourage inflows into the country by ensuring a level playing field for all investors (domestic and foreign), but also be captured and misused to discourage FDI in the name of superior national interests or under pressure from lobbying groups. The worldwide emergence of “global protectionism”, in reaction to the inequalities and imbalances caused by globalization, and the impasse of supranational institutions in the governance of international relations have paved the way for the abuse of competition policy as a barrier to FDI. After giving evidence of these phenomena that threaten economic growth and welfare, the paper discusses prospects for preserving an institutional environment conducive to FDI. A desirable to-do list is outlined.

Suggested Citation

  • Sergio Mariotti, 2023. "Competition policy in the new wave of global protectionism. Prospects for preserving a fdi-friendly institutional environment," Economia e Politica Industriale: Journal of Industrial and Business Economics, Springer;Associazione Amici di Economia e Politica Industriale, vol. 50(2), pages 227-241, June.
    • Handle: RePEc:spr:epolin:v:50:y:2023:i:2:d:10.1007_s40812-023-00263-3
    DOI: 10.1007/s40812-023-00263-3
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    More about this item

    Keywords

    Competition policy; Foreign direct investment; Global protectionism; International relations; Populism; Regulatory authorities;
    All these keywords.

    JEL classification:

    • F20 - International Economics - - International Factor Movements and International Business - - - General
    • F50 - International Economics - - International Relations, National Security, and International Political Economy - - - General
    • F60 - International Economics - - Economic Impacts of Globalization - - - General
    • L40 - Industrial Organization - - Antitrust Issues and Policies - - - General
    • L50 - Industrial Organization - - Regulation and Industrial Policy - - - General

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