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Competition Policy and FDI: A Solution in Search of a Problem?

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  • Marcus Noland

    (Peterson Institute for International Economics)

Abstract

This paper reviews a variety of documentary evidence to find evidence of the impact of private practices in discouraging inward foreign direct investment (FDI). Outside of a few countries, there is little documentary evidence that this is indeed a problem. Sectoral data on inward FDI from the United States and Japan are then analyzed econometrically. The regression results reinforce the impression gleaned from the document review: barriers to FDI are more likely to take the form of general economic conditions or specific policies facilitated by private practices than systematic aspects of industrial structure.

Suggested Citation

  • Marcus Noland, 1999. "Competition Policy and FDI: A Solution in Search of a Problem?," Working Paper Series WP99-3, Peterson Institute for International Economics.
    • Handle: RePEc:iie:wpaper:wp99-3
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    Cited by:

    1. Sanghamitra Sahu & Neha Gupta, 2008. "Competition Clauses in Bilateral Trade Treaties - Analysing the Issues in the Context of India’s Future Negotiating Strategy," Trade Working Papers 22240, East Asian Bureau of Economic Research.
    2. Mariotti, Sergio & Marzano, Riccardo, 2021. "The effects of competition policy, regulatory quality and trust on inward FDI in host countries," International Business Review, Elsevier, vol. 30(6).

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