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Antitrust Law And The Promotion Of Democracy And Economic Growth

Author

Listed:
  • Niels Petersen

Abstract

There is a considerable debate in the legal literature about the purpose of antitrust institutions. Some argue that antitrust law merely serves the purpose of economic growth, while others have a broader perspective on the function of antitrust, maintaining that the prevention of economic concentration is an important means to promote democratization and democratic stability. This article seeks to test the empirical assumptions of this debate. Using panel data of 154 states from 1960 to 2005, it analyzes whether antitrust law actually has a positive effect on democracy and economic growth. The article finds that antitrust law has a positive effect on the level of GDP per capita and economic growth after ten years. However, there is no significant positive effect on the level of democracy. It is suggested that these results might be due to the current structure of existing antitrust laws, which are designed to promote economic efficiency rather than to prevent economic concentration.

Suggested Citation

  • Niels Petersen, 2013. "Antitrust Law And The Promotion Of Democracy And Economic Growth," Journal of Competition Law and Economics, Oxford University Press, vol. 9(3), pages 593-636.
    • Handle: RePEc:oup:jcomle:v:9:y:2013:i:3:p:593-636.
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    File URL: http://hdl.handle.net/10.1093/joclec/nht003
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    References listed on IDEAS

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    Citations

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    Cited by:

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    6. Comisión Nacional de los Mercados y la Competencia (CNMC), 2023. "Guide. Competition against inflation: How competition and efficient regulation help protect the purchasing power of consumers," Colección Estudios de Mercado G-2022-02_ENG, Comisión Nacional de los Mercados y la Competencia (CNMC).
    7. Majah-Leah Ravago & James Roumasset & Arsenio Balisacan, 2021. "Adapting Competition Law and Policy for Economic Development: Asian Illustrations," Working Papers 202103, University of Hawaii at Manoa, Department of Economics.
    8. Yihao Chen & Siying Ding & Yongzheng Liu & Guangliang Ye, 2024. "Competition policy and firm productivity: Quasi‐experimental evidence from China," The World Economy, Wiley Blackwell, vol. 47(6), pages 2236-2263, June.
    9. Samà, Danilo, 2014. "Essays on economic analysis of competition law: theory and practice," MPRA Paper 103118, University Library of Munich, Germany.
    10. Anu Bradford & Adam S. Chilton & Christopher Megaw & Nathaniel Sokol, 2019. "Competition Law Gone Global: Introducing the Comparative Competition Law and Enforcement Datasets," Journal of Empirical Legal Studies, John Wiley & Sons, vol. 16(2), pages 411-443, June.
    11. Majah-Leah V. Ravago & James A. Roumasset & Arsenio M. Balisacan, 2021. "Adapting Competition Law and Policy for Economic Development with Asian Illustrations," Department of Economics, Ateneo de Manila University, Working Paper Series 202103, Department of Economics, Ateneo de Manila University.

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    More about this item

    JEL classification:

    • K21 - Law and Economics - - Regulation and Business Law - - - Antitrust Law
    • L40 - Industrial Organization - - Antitrust Issues and Policies - - - General

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