DP5189 | Factors Accounting for the Enactment of a Competition Law - An Empirical Analysis

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The paper is concerned with the factors that account for decisions to enact a national competition law. In a first step, the paper updates and enlarges the existing databases of countries that have enacted a competition law. The paper then identifies and discusses possible factors that influence the decision to enact a competition law. In a third step, the method of panel-data logit analysis is employed to test a set of hypothesis pertaining to the factors across the time dimension and across countries. The results of this analysis are interpreted in terms of significance and in terms of the sign of their influence on the probability of a country to enact. Given generality of the analysis, the results can shed light on the probability of individual countries, and in particular developing countries, to actually take the step of enactment.