Competition Law and Economics
Show Less

Competition Law and Economics

Advances in Competition Policy Enforcement in the EU and North America

Edited by Abel M. Mateus and Teresa Moreira

Competition policy is at a crossroads on both sides of the Atlantic. In this insightful book, judges, enforcers and academics in law and economics look at the consensus built so far and clarify controversies surrounding the issue.
Buy Book in Print
Show Summary Details
You do not have access to this content

Chapter 19: Competition Policy and Competitiveness in Europe

John Fingleton


John Fingleton INTRODUCTION In looking at competition policy and competitiveness in Europe, the Irish experience is relevant in two key ways. Firstly, with enlargement, the European Union now has a number of smaller Member States (including Portugal), who as small, open economies face very similar issues, both within Europe and globally; secondly, operating as part of a globalised world the European Union itself has characteristics not unlike a small, open economy. As a very good example of a small, open economy, Ireland dismisses one persistent myth, which is that trade, or openness to trade, automatically drives competition in an economy. Ireland has been open to trade for some 30 years but the domestic economy has been riddled with restrictions on competition. Primarily using examples from Ireland, I will argue that competition policy is good industrial policy and that strong, politically independent national competition policies contribute to the competitiveness of Europe as a whole. More specifically, I will address some of the flaws I see with the arguments for national champions and national ownership, and I will then draw some policy conclusions. COMPETITION IS GOOD INDUSTRIAL POLICY There is now a range of literature showing the strong relationship between competition and productivity growth.1 The core relationship is explained through three mechanisms: (i) within firm effects dealing with issues like principal – agent problems, cost reduction within the firm and questions 1 See, eg., Aghion and Griffith (2005) and OFT (2007c). 300 Competition policy and competitiveness in Europe 301 of X-inefficiency; (ii) between-firm...

You are not authenticated to view the full text of this chapter or article.

Elgaronline requires a subscription or purchase to access the full text of books or journals. Please login through your library system or with your personal username and password on the homepage.

Non-subscribers can freely search the site, view abstracts/ extracts and download selected front matter and introductory chapters for personal use.

Your library may not have purchased all subject areas. If you are authenticated and think you should have access to this title, please contact your librarian.

Further information

or login to access all content.