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The Impact Of Macroeconomic Factors On Competition Policy Effectiveness Within European Union

Author

Listed:
  • Mosteanu Tatiana

    (Bucharest Academy of Economic Studies, Bucharest Academy of Economic Studies, Faculty of Finance, Insurance, Banking and Stock Exchanges)

  • Romano Oana Maria

    (Misys Banking Systems, Bucharest Academy of Economic Studies, Faculty of Finance, Insurance, Banking and Stock Exchanges)

  • Dragoi Ionut

    (Romanian Competition Council, Bucharest Academy of Economic Studies, Faculty of Finance, Insurance, Banking and Stock Exchanges)

Abstract

In the last decades, more and more countries have enacted competition laws, understanding the importance of this process in providing a normal functioning of the economy. Analyzing competition policy effectiveness is important not only because of the recent extent of the phenomenon, but also because of the impact of competition policy effectiveness on economic development and, in the current economic climate, on the economic recovery process. For this reason, quantitative evaluation for competition policy effectiveness became very useful as data handling and understanding the whole phenomenon are easier this way and an international perspective is provided. This was made possible by various international institutions that have created a system of aggregated indicators for the evaluation of competition law enforcement and competition advocacy (perceived effectiveness). The purpose of our research is to identify the macroeconomic factors that influence the effectiveness of competition law implementation within the European Union Member States. We have tasted the influence of 13 macroeconomic, using panel data methodology and data from the last four years. We obtained ß coefficients statistically significant only for 11 of them. The results are consistent with prior analyzed studies and economic logic: positive influence from market division, intensity of local competition, ethical behavior of firms, strength of auditing and reporting standards, efficiency of legal framework in settling disputes, protection of minority shareholders'(tm) interests, public trust of politicians, economic dimension and market size and negative influence from corruption level and diversion of public funds. Based on the achieved results we can perform an analysis of principal components leading to causal space reduction with minimal information loss and without informational redundancy, creating the premises for building a model that explains competition policy effectiveness through macroeconomic factors.

Suggested Citation

  • Mosteanu Tatiana & Romano Oana Maria & Dragoi Ionut, 2012. "The Impact Of Macroeconomic Factors On Competition Policy Effectiveness Within European Union," Annals of Faculty of Economics, University of Oradea, Faculty of Economics, vol. 1(2), pages 483-488, December.
    • Handle: RePEc:ora:journl:v:1:y:2012:i:2:p:483-488
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    References listed on IDEAS

    as
    1. Tatiana Mosteanu & Maria Alexandru, 2008. "Considerations On The Role Of Economic Analysis In The Field Of Competition," Theoretical and Applied Economics, Asociatia Generala a Economistilor din Romania - AGER, vol. 12(12(517)(s), pages 5-8, December.
    2. Motta,Massimo, 2004. "Competition Policy," Cambridge Books, Cambridge University Press, number 9780521016919.
    3. Kronthaler, Franz, 2007. "Effectiveness of Competition Law: A Panel Data Analysis," IWH Discussion Papers 7/2007, Halle Institute for Economic Research (IWH).
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    More about this item

    Keywords

    competition; antitrust policy; economic efficiency; financial crisis; regulations;
    All these keywords.

    JEL classification:

    • K21 - Law and Economics - - Regulation and Business Law - - - Antitrust Law
    • L44 - Industrial Organization - - Antitrust Issues and Policies - - - Antitrust Policy and Public Enterprise, Nonprofit Institutions, and Professional Organizations
    • R58 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Regional Government Analysis - - - Regional Development Planning and Policy

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