Competitive Advantage and Competition Policy in Developing Countries (CRC Series on Competition, Regulation and Development)

386 Pages·2007·2.74 MB·English

by  Paul Cook

Competitive Advantage and Competition
Policy in Developing Countries
THE CRC SERIES ON COMPETITION,REGULATION AND
DEVELOPMENT
Series Editors:Paul Cook,Professor ofEconomics and Development
Policy and Martin Minogue,Senior Research Fellow,Institute for
Development Policy and Management,University ofManchester,UK
Titles in the series include:
Leading Issues in Competition,Regulation and Development
Edited by Paul Cook,Colin Kirkpatrick,Martin Minogue and David Parker
The Politics of Regulation
Institutions and Regulatory Reforms for the Age of Governance
Edited by Jacint Jordana and David Levi-Faur
Regulating Development
Evidence from Africa and Latin America
Edited by Edmund Amann
Regulatory Governance in Developing Countries
Edited by Martin Minogue and Ledivina Cariño
Regulatory Economics and Quantitative Methods
Evidence from Latin America
Edited by Omar Osvaldo Chisari
Regulation,Markets and Poverty
Edited by Paul Cook and Sarah Mosedale
Competitive Advantage and Competition Policy in Developing Countries
Edited by Paul Cook,Raul Fabella and Cassey Lee
Competitive
Advantage and
Competition Policy in
Developing Countries
Edited by
Paul Cook
Director of the Centre on Regulation and Competition
(CRC),University of Manchester,UK
Raul Fabella
Professor of Economics and Dean,School of Economics,
University of the Philippines
Cassey Lee
Associate Professor of Industrial Economics, Nottingham
University Business School,University of Nottingham
(Malaysia Campus),Malaysia
THE CRC SERIES ON COMPETITION,REGULATION AND
DEVELOPMENT
Edward Elgar
Cheltenham,UK • Northampton,MA,USA
© Paul Cook,Raul Fabella and Cassey Lee 2007
All rights reserved.No part of this publication may be reproduced,stored in
a retrieval system or transmitted in any form or by any means,electronic,
mechanical or photocopying,recording,or otherwise without the prior
permission of the publisher.
Published by
Edward Elgar Publishing Limited
Glensanda House
Montpellier Parade
Cheltenham
Glos GL50 1UA
UK
Edward Elgar Publishing,Inc.
William Pratt House
9 Dewey Court
Northampton
Massachusetts 01060
USA
A catalogue record for this book is available from the British Library
Library ofCongress Cataloging in Publication Data
Competitive advantage and competition policy in developing countries /
edited by Paul Cook,Raul Fabella and Cassey Lee.
p. cm.– (CRC series on competition,regulation and development)
Includes bibliographical references and index.
1.Competition–Developing countries.2.Developing countries–Economic
policy.I.Cook,Paul.II.Fabella,Raul V.III.Lee,Cassey.
HC59.7.C624 2007
338.6(cid:1)048091724–dc22 2006028691
ISBN 978 1 84542 627 9 (cased)
Printed and bound in Great Britain by MPG Books Ltd,Bodmin,Cornwall
Contents
List of contributors vii
Preface ix
Acknowledgements x
1. Introduction 1
Paul Cook,Raul Fabella and Cassey Lee
PART I COMPETITION POLICY AND DEVELOPMENT
2. Competition and the regulation of economic development 9
John Stanley Metcalfe and Ronnie Ramlogan
3. Model competition laws 29
Cassey Lee
4. Legal traditions and competition policy 54
Cassey Lee
5. Establishing consumers as equivalent players in
competition policy 79
Kamala Dawar
6. Guanxiand taipans:market power and the East Asian
model of competition 93
Raul Fabella
PART II EXPERIENCE WITH COMPETITION POLICY
7. Competition policy and the legal system in Brazil 109
Germano Mendes de Paula
8. Competition policy and enterprise development:the role of
public interest objectives in South Africa’s competition policy 136
Trudi Hartzenberg
9. Competitive markets and competition policy in Indonesia 155
Efa Yonnedi
10. Competition policy in Malaysia 183
Cassey Lee
11. Competition policy and competitive markets in Bangladesh 205
Selim Raihan
v
vi Contents
PART III COMPETITION AND COMPETITIVE
ADVANTAGE
12. The role of South African competition law
in supporting SMEs 237
Kim Kampel
13. Globalization and competition in the South African
wine industry 260
Joachim Ewert and Jeffrey Henderson
14. Foreign competition and growth:Bangladesh
manufacturing industries 281
Selim Raihan
15. Domestic competition and technological and
trade competitiveness 331
Yuichiro Uchida and Paul Cook
Index 367
Contributors
Paul Cookis Professor of Economics and Development Policy and Head
ofthe Institute for Development Policy and Management at the University
of Manchester.He is also Director of CRC and the Competition Research
Programme at the CRC,University of Manchester,UK.
Kamala Dawar is Trade Policy and Representation Officer at Consumers
International,London,UK.
Germano Mendes de Paula is Associate Professor of Economics at the
Federal University of Uberlandia,Brazil.
Joachim Ewertis Associate Professor in the Department ofSociology at the
University of Stellenbosch,South Africa.
Raul Fabella is Professor of Economics and Dean of the School of
Economics,University of the Philippines and a regional research partner
with CRC,University of Manchester,UK.
Trudi Hartzenberg is Executive Director of the Trade Law Centre for
Southern Africa (TRALAC).
Jeffrey Hendersonis Professor of International Economic Sociology at the
Manchester Business School and Institute for Development Policy and
Management,University of Manchester,and Research Fellow at the CRC,
University of Manchester,UK.
Kim Kampelis Case Manager at the Competition Tribunal ofSouth Africa,
Pretoria,South Africa.
Cassey Lee is Associate Professor of Industrial Economics at the
Nottingham University Business School, University of Nottingham
Malaysia Campus,Malaysia and a regional research partner with the CRC,
University of Manchester,UK.
John Stanley Metcalfe is Stanley Jevons Professor of Economics and
Director of the Centre for Research in Innovation and Competition
(CRIC), University of Manchester and a Research Fellow at the CRC,
University of Manchester,UK.
vii
viii Contributors
Selim Raihanis University Lecturer at Dhaka University,Bangladesh and
an associate of the CRC,University of Manchester,UK.
Ronnie Ramlogan is a Research Fellow at the Centre for Research in
Innovation and Competition (CRIC),University of Manchester,UK.
Yuichiro Uchida is a Research Associate at the CRC, University of
Manchester,UK.
Efa Yonnediis a doctoral student and an associate of the CRC,University
of Manchester,UK.
Preface
Issues of competition and regulation have long been matters of both public
policy debate and academic research in developed economies, but until
recently were relatively unexamined in relation to developing economies.The
Centre on Regulation and Competition (CRC) of the University of
Manchester, UK, has been conducting research into regulatory develop-
ments and competition issues since 2001,with a primary focus on changes
and reforms in developing countries, working together with partners both
inthe United Kingdom and overseas in China,Ghana,India,Malaysia,the
Philippines, South Africa and Sri Lanka. This work has been funded
primarily by the United Kingdom’s Department for International
Development,with other support from the UK Foreign and Commonwealth
Office’s Global Opportunities Fund, and from the British Council. Other
collaborating agencies include the Foreign Investment Advisory Service of
the World Bank and the Competition Division of the United Nations
Committee on Trade and Development (UNCTAD).
This book series is one of the many ways in which the work of the CRC
and its partners is disseminated, complementing conferences, workshops,
journal publication and policy briefs.This volume incorporates the research
of CRC on competition and competition policy.The contributors focus on
the meaning and understanding of the relation between competition and
development and the implications for competition policy.The volume also
gives attention to the difficulties associated with measuring competition and
uses a range of quantitative techniques to assess the competitiveness of
markets. These new research insights will provide a stimulus to reflexive
policy-making in international development institutions, and a focus for
further contextual research in the academic development community.
Paul Cook
Martin Minogue
Series Editors
ix
Acknowledgements
We are grateful for the financial support provided by the UK Department
for International Development (DFID) to the CRC.This has enabled the
CRC to fund research and host conferences from which the contributions
for this book have been drawn.We would also like to express our thanks to
Pam Johnson who has provided support in the preparation of this book.
x