Regulatory policy and behavioural economics if tomorrow there was a heat wave would you prefer to have an ice cream or an ice lolly. Academic economists gave their views on how economic integration has affected financial market stabil ity, and a panel of regulatory specialists dis cussed possible policy responses. Antitrust, regulatory capture, and economic integration. The second section describes the vertical integration regulatory paradigm in the electric utility industry and the motivations that lead regulators to introduce competition as they are documented. The relative desirability of regulatory cooperation and competition has been debated for some time in areas like environmental law, tax policy, banking regulation, labor law, and antitrust. This paper explores the relationship between economic integration and environmental regulation. Request pdf on jan 1, 2001, d geradin and others published regulatory competition and economic integration. Regulatory competition is an economic theory of government organization that equates. The editors bring together leading scholars to examine the various aspects of the debate between harmonization and regulatory competition across three comparative dimensions. The development of eurasian integration is increasingly becoming the subject of various assessments and discussions. The idea is that one can pursue market integration, indeed deep market integration, while respecting diversity amongst the participating countries. Benefits of competition and potential harms from market power a long line of economic literature argues that competition among firms benefits consumers via lower prices for an overview, see kovacic and shapiro 2000. The session started with a discussion of the fac tors driving global economic integration, then turned to financial market issues. This study addresses one of the hottest policy questions on both sides of the atlanticat what level of government should regulation be undertaken the editors bring together leading scholars to examine the various aspects of the debate between harmonization and regulatory competition across three comparative dimensions.
This chapter introduces regulatory competition as a conceptual framework and factual phenomenon. Labour and environmental regulation are once again recurrent themes but there is also discussion of international securities regulation, antitrust law and the trips agreement. The contributors to competition law and economic regulation. Even seemingly neutral antitrust laws can lead discrimination if they are enforced selectively. Riac regulatory competition in the eurasian economic union. Competition and regulatory policy and economic growth. However, despite the rapid increase in global economic integration, supranationalism remains the exception. Esty and geradin bring together scholars from both europe and the united states to examine the various aspects of the debate between harmonization and regulatory competition across three comparative dimensions. Background and analysis congressional research service 1 introduction the united states and the 27member european union eu share a huge, dynamic and mutually beneficial economic partnership. Economic integration, process in which two or more states in a broadly defined geographic area reduce a range of trade barriers to advance or protect a set of economic goals. Launched at a meeting of the prime ministers in 2011 the ipf builds on the free trade agreement negotiated between australia, new zealand and the ten asean member states in 2009. Authors investigate the distortions that national competition authorities generate when they pursue non competition goals in favour of domestic firms, and discuss ways to address this negative policy development in a globalised world.
Mcom competition and economic regulation description of programme. Regulatory competition depends upon the ability of actors such as companies, workers or other. The third section shows the basic underpinnings of electricity markets. This paper is an output of the regulatory entities capacities building project that was undertaken by the centre for competition, regulation and economic development, funded by the south african governments economic development department under an moa with the university of johannesburg. This volume began life as a workshop on international regulatory competition and coordination, organized jointly by the school of law, university of warwick, and the cardozo school of law, yeshiva university, new york. Regulatory policy not the same as competition policy some sectoral regulation is essentially attempting to mimic competition natural monopolies will never be competitive. It begins by observing that fears that economic competition would lead to a regulatory race to the bottom have proven unwarranted. It discusses the structural preconditions of a law market, including state suppliers incentives to compete at all. Regulatory competition, 1999, for their helpful comments. Spatt chief economist and director, office of economic analysis u. Theoretically, vertical integration can harm competition, making it possible that divorcement policies could increase welfare. Competition law and economic regulation wits university. Regulatory competition, also called competitive governance or policy competition, is a phenomenon in law, economics and politics concerning the desire of lawmakers to compete with one another in the kinds of law offered in order to attract businesses or other actors to operate in their jurisdiction. Freedom of establishment and regulatory competition published on by oxford university press.
Gasoline divorcement regulations restrict the integration of gasoline refiners and retailers. This chapter shows that there are policy areas in which the national governing capacity is not significantly reduced by economic integration and in which european public policy is able to adopt regulations that match or exceed the level of protection achieved in the most advanced member states of the european union. Addressing market power in southern africa critically assess the efficacy of the competition and economic regulation frameworks, including the impact of a number of the regional competition authorities in a. Regulatory competition and coopetition damien geradin and joseph a. Environmental regulation and economic integration journal. Financial sector reforms, competition and banking system stability in subsaharan africa. The many states seeking regulatory convergence on liberalization and competition issues on a bilateral and regional level shows the importance of liberalization. Financial sector reforms, competition and banking system stability in subsaharan africa jennifer moyo african development bank boaz nandwa dubai economic council jacob oduor african development bank anthony simpasa african development bank paper presented at the joint resspr conference on macroeconomic challenges facing. Law markets have emerged in a growing number of fields. Competition law and regional economic integration is part of the world bank working paper series.
As mentioned, one important trigger of regulatory competition in the eu. The paper investigates the distortions that national competition authorities generate when they pursue noncompetitive goals in favour of domestic firms, and discusses ways to address this negative policy development in a globalised world. Jul 22, 2015 antitrust, regulatory capture and economic integration. These papers are published to communicate the results of the banks ongoing research and to stimulate public discussion. The primary objective of this essay is to examine the relationship be tween regulatory reform and international economic integration. The final part looks at regulatory competition from a global perspective. Comparative perspectives, organised by the regulation. This article explores the relationship between economic integration and environmental regulation. Comparative perspectives find, read and cite all the research you need on researchgate. A primary interest in competition for international trade and investment would suggest the use of the theory of regulatory competition, whereas economic conditionality is an. Centre for competition, regulation and economic development. Bruegel policy contribution issue 201511, july 2015 mariniello, mario and neven, damien and padilla, jorge 2015 antitrust, regulatory capture and economic integration. The design of competition laws and institutions to promote competition should consider the constraints that imperfect information imposes on actual policy implementation and should explicitly consider the cost of failing to prevent inefficient conducttransactions type ii errors against the cost of misguided intervention type i errors. Arlington, june 17 nathan associates is pleased to announce that once again ram tamara has been recognized by whos who legal as one of the leading competition economists from around the world.
Antitrust, regulatory capture, and economic integration ictsd. Benefits of competition and potential harms from market power. Legal diversity and regulatory competition centre for. Financial sector reforms, competition and banking system. According to its proponents, regulatory competition offers a market driven mechanism for achieving economic and political integration, which will confer upon. The aseancer integration partnership forum ipf, is an annual seminar where we share experiences on economic integration. Students and practitioners of regulation will benefit from using this book. Linking environmental regulation and economic growth. Steps towards a deeper economic integration european commission. Democratic legitimacy under conditions of regulatory. Pdf regulatory competition in the eurasian economic union. Comparative perspectives international economic law series esty, daniel c.
Simon deakin according to its proponents, regulatory competition offers a marketdriven mechanism for achieving economic and political integration, which will confer upon europe the dynamism which the united states has long enjoyed. The impact of international institutions and trade on. Antitrust, regulatory capture and economic integration. This study addresses one of the hottest policy questions on both sides of the atlanticat what level of government should regulation be undertaken. Regulatory competition versus harmonisation in european. Antitrust, regulatory capture and economic integration bruegel. Esty and geradin bring together topnotch scholars from both europe and the united states to examine the various aspects of the debate between harmonization and regulatory competition across three comparative dimensions. A long line of economic literature argues that competition among firms benefits consumers via lower prices for an overview, see kovacic and shapiro 2000. They reach well beyond national borders and seek deep integration among nations rather than shallow integration, to use lawrences 1996 helpful distinction. The yangtze river delta region is a representative region for the development of chinas urban agglomerations. Antitrust, regulatory capture and economic integration contribution the multiplicity of objectives for competition policy, and in particular the adoption of noncompetition goals, opens the door to discretionary decisions, political intervention and more generally the capture of enforcement decisions by particular interests. They cover regulatory standards, health and safety rules, investment, banking and finance, intellectual property, labor, the environment, and many other subjects. Third, regulatory competition emerging from the increasing economic integration of european and global markets has been identified as important factor that drives the mutual adjustment of policies across countries.
The qualification was developed following the identification of a critical gap in skills in the field on the continent. Is regulatory competition the future for european integration. It begins by observing that fears that economic competition would lead to a regulatory race toward the bottom appear to have proven unwarranted. Apecoecd integrated checklist on regulatory reform. Policy brief regulatory competition in the eurasian. Among these issues were the role of regulatory competition, the coverage of standards across a variety of financial institutions, and the role of central banks. Whether called federalism or subsidiarity, the struggle between those who wish to centralize governmental functions and those who seek to decentralize them looms large. However, these gains could have been substantially larger if the removal of most of the remaining crossborder barriers was achieved. Securities and exchange commission calgary, alberta, canada october 23, 2006.
Allow me to briefly elaborate on four main features of the process of economic integration in the european union, and the euro area in particular. Antitrust, regulatory capture and economic integration contribution the multiplicity of objectives for competition policy, and in particular the adoption of non competition goals, opens the door to discretionary decisions, political intervention and more generally the capture of enforcement decisions by particular interests. Adapting rulemaking for an interconnected world policy brief. The level of integration involved in an economic regionalist project can vary enormously from loose association to a. Freedom of establishment and regulatory competition oxford. This work is based on an essay, in publication, in regulatory competition and economic integration. Competitive electricity market regulation in the united. Regulatory restrictions on vertical integration and control. Beginning from a theoretical assessment of these legal instruments as discrete mechanisms, the author goes on to address numerous facets of the substantive interrelationship between competition law and economic regulation. This study addresses one of the hottest policy questions on both sides of the atlanticat what level of government should regulation be. The university of johannesburg is proud to offer the master of commerce qualification in competition and economic regulation in 2020 for the third year running. The aseancer integration partnership forum new zealand. The distinctiveness of the european approach is nevertheless under threat, in part because it is being compared to an idealized version of the us experience, one which abstracts.
The experience of interagency regulatory competition in chinas regulation of inbound foreign investment xingxing li regulatoy competition theorists predict that interageng regulatoy competition one form qf regulatory competition may generate benefits that outweigh costs. Introduction and purpose mutual recognition is one of the most appreciated innovations of the eu. Some sectoral regulators also charged with moving former monopolies toward effective competition. Cheffins, and participants at the conference on regulatory competition and. The first one offers an indepth examination of the complex relationship between the european integration process and regulatory competition, exploring its historical and conceptual foundations, as well as critically engaging with its implications on the eu constitutional architecture. This may seem a trivial question but getting the question right could make the difference. We also discuss the economic implications of our statistical analysis on cafta. Regulatory competition and economic integration daniel c. The author deduces that there are two reasons for the political salience of this alleged deficit.
It closes with a glance at a number of areas in which competitive dynamics among legislators can be found to operate. Speaking broadly, optimal policy is likely to involve a mix of competition and cooperation between governments, firms, and other agents. Oct 23, 2006 regulatory competition, integration and capital markets by chester s. It is the subject of research in various scientific fields, including jurisprudence, political science and economics. Regulatory competition, also called competitive governance or policy competition, is a phenomenon in law, economics and politics concerning the desire of law makers to compete with one another in the kinds of law offered in order to attract businesses or other actors to operate in their jurisdiction. International regulatory competition and coordination. This paper provides a brief overview of how regulatory competition can provide better. Pdf regulatory competition in the eurasian economic. Regulatory harmonisation is the ultimate irc approach to boost the effectiveness of regulation dealing with transnational market failures and to dismantle trade barriers to regulatory divergence. Regulatory reform refers to changes that improve regulatory quality to enhance the economic. Regulatory competition and economic integration addresses one of the hottest policy questions on both sides of the atlantic.
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