Competition Law And The Investment Climate In Developing Countries

The econometric literature on the effects of competition law on investment focuses almost exclusively on the consequences for inflows of foreign direct investment. What is more, the empirical papers in this literature can be counted on the figures of one hand and contain potentially contradictory findings. Precious little has been made of the potential effects of competition law enforcement on the level and composition of investment by state bodies and by domestic firms, which is surprising given that some of the recent enforcement cases in developing countries have almost certainly affected the returns on such domestic investments.