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21. Anticompetitive practices on public procurement: Evidence from Brazilian electronic biddings

Author:
Antonio Sampaio, Paulo Figueiredo, and Klarizze Puzon
Publication Date:
04-2022
Content Type:
Working Paper
Institution:
United Nations University
Abstract:
Using big data from the Brazilian public procurement system, this research aims to investigate what factors are associated with the occurrence of anticompetitive practices in electronic bidding. Our analysis considers all services contracted between 2014 and 2017. The study uses the logit regression model with a dependent binary variable to model the probability of bidding fraud as a function of a vector of explanatory variables composed of the characteristics of the bidding process and of the supplier, in terms of firm size, thus quantifying the relationship between the explanatory variables and the probability of fraud occurrence. We find that firm size and the Apparent Overbilling Index which we propose are associated with the occurrence of fraud and anticompetitive practices in electronic auctions. This study contributes to the accumulation of empirical and theoretical knowledge, expanding safer bases for governments and society in the fight against corruption.
Topic:
Fraud, Economic Competition, and Public Procurement
Political Geography:
Brazil and South America

22. Strategic Autonomy and Long-term Innovation Competitiveness: On the Importance of Intellectual Property Rights for the Production of High-Value Medicines in the EU

Author:
Matthias Bauer
Publication Date:
02-2022
Content Type:
Working Paper
Institution:
European Centre for International Political Economy (ECIPE)
Abstract:
Europe’s political leaders have in recent months called for “European industrial autonomy”. Notions of dependency, sovereignty and resilience are now also referred to in policy proposals targeted at pharmaceutical companies, with “strategic autonomy” being the ultimate political ambition. The precise meaning of strategic autonomy in biopharmaceutical industries remains yet to be defined, although the current Pharmaceutical Strategy only refers to “open strategic autonomy” in the context of dependencies and supply chains. This is regrettable, as it does not take into account the importance of strategic research and innovation autonomy, allowing the EU to ensure a high degree of autonomy in innovative medicines and therapies. Current policy conceptions fail to account for businesses’ long-term international innovation competitiveness and Europe’s capability to attract investments in pharmaceutical research and cutting-edge production technologies. Present conceptions of strategic autonomy of Europe’s pharmaceutical industry disregard the fact that the EU is substantially lagging the USA and, increasingly, other parts of the word in pharmaceutical innovation. Clinical trials’ pipeline data shows that, in the future, EU Member States will very likely become increasingly dependent on innovative medicines that are temporarily protected by patents and market exclusivity rights held by non-EU rights holders in many therapeutic areas. This gives some urgency to Commission President von der Leyen ensuring that the European industry remains an “innovator” and “world leader” (Mission Letter by Commission President von der Leyen to Commissioner Kyriakides). The European Commission’s current understanding of sovereignty in pharmaceutical industries centres around one core theme: the reduction of dependencies from pharmaceutical suppliers outside the EU. At the same time, in an effort to achieve equitable access to affordable medicines and to foster research into unmet medical needs, it considers changes in the incentive structure for research in medicines for children and rare diseases, and new obligations for companies to achieve a more equitable access to medicines across Member States. While these objectives are generally merited, the Commission has established a narrow perspective about a concept that is aiming for ambitious long-term achievements for Europe’s pharmaceutical industry. The industry’s future innovation competitiveness and the capacity to develop and produce high value-added medicines, which should be at the core of any concept of long-term autonomy, have largely been ignored.
Topic:
Intellectual Property/Copyright, European Union, Innovation, Medicine, Strategic Autonomy, and Economic Competition
Political Geography:
Europe

23. Merger Review Regimes in the ASEAN Region and Case Analysis of Grab-Uber Merger

Author:
Yungshin Jang and Gu Sang Kang
Publication Date:
09-2021
Content Type:
Policy Brief
Institution:
Korea Institute for International Economic Policy (KIEP)
Abstract:
In 2018, the largest yet cross-border M&A deal between digital platforms in Southeast Asia was reached, namely the Grab-Uber M&A case. The local digital platform Grab consolidated the regional operations of San Francisco, California-based Uber, a development which had significant effects on competition and consumer welfares in the Southeast Asia digital market. The competition authorities in the region independently initiated their investigation and started to deliberate the merger case to determine the anti-competitive effects on their domestic market, and to decide whether this transaction should be restricted or approved. Even though the two merging and merged firms completed their transactions, each authority applied different logic and imposed different remedies in deciding the case. Authorities in some member states such as Singapore and the Philippines decided that the Grab-Uber merger was anti-competitive, while others such as Indonesia and Viet Nam considered the merger not anti-competitive. Upon this backdrop, this article reviews the competition policies and laws of four major ASEAN countries – Indonesia, Singapore, Viet Nam, and the Philippines – from institutional and legal perspectives, focusing on M&A review regimes. Then, we briefly introduce how these com-petition authorities decided on the Grab-Uber merger case, also analyzing the competition effects of the case on the ride-hailing market in the countries. Based on the analysis results, we propose overseas competition policies for Korea.
Topic:
Markets, Economy, Business, ASEAN, Economic Competition, and Mergers and Acquisitions
Political Geography:
Indonesia, South Korea, Vietnam, Philippines, and Singapore

24. Taxing Digital Services – Compensating for the Loss of Competitiveness

Author:
Erik van der Marel and Peer Schulze
Publication Date:
07-2021
Content Type:
Policy Brief
Institution:
European Centre for International Political Economy (ECIPE)
Abstract:
Several countries around the world have implemented a tax on digital services, commonly called Digital Services Tax (DST). This policy brief takes a closer look at why some European countries have imposed DSTs but not others. Surely, there are economic explanations behind the fact that Austria, France, Italy, Spain, and the UK have introduced DSTs – but not other countries in Europe. The five tax-imposing countries (here called DST5) have been losing trade competitiveness in digital services over the last 15 years. On the many trade competitiveness indicators we compute, the DST5 score lower values and show lower growth rates compared to other non-DST countries in Europe. Moreover, the differences between the DST5 and non-DST countries are stark, suggesting that digital services markets for the latter group of countries are a lot more dynamic and globalized. The difference between DST5 and other European countries in digital services competitiveness is striking. This is not to say that there should not be special taxes on digital services – that is a different issue – but it is important that the discussion about the DST starts from a better understanding of how such a tax relates to underlying patterns of digital service performance.
Topic:
European Union, Digital Economy, Tax Systems, and Economic Competition
Political Geography:
Europe

25. Factors Affecting Botswana's Competitiveness

Author:
Grace G. Tabengwa
Publication Date:
11-2011
Content Type:
Policy Brief
Institution:
Botswana Institute for Development Policy Analysis
Abstract:
The World Economic Forum (WEF) in collaboration with the Botswana National Productivity Centre (BNPC) has on the 7th of September launched the 2011/12 Global Competiveness Report (GCR) which provides country- wide rankings on the competitiveness for a set of 142 nations so far (appended list). Since its introduction in 2005, the Global Competitiveness Index (GCI) has been used by an increasing number of countries and institutions to benchmark national competitiveness. The index is based on a survey questionnaire instrument administered to business entities and actual country data for a number of indicators of competitiveness. This brief note, therefore, examines Botswana’s competitive position and implications in light of the rankings Botswana attained from the 2011/12 GCR and earlier years. The analysis provides a comparison of Botswana’s performance and those of other countries on the key pillars and core indicators that inform the overall rankings to identify areas where Botswana has strengths and weaknesses in as far as competitiveness is concerned. The indicators which impact adversely on Botswana’s competitiveness and the overall performance of the pillars are fl agged (*) so that they are given emphasis in the reforms and strategies to improve competitiveness. This should inform policy dialogue and strategic decision making with insight on areas that should form the agenda for strategic intervention to address factors that continue to undermine Botswana’s competitiveness.
Topic:
Development, Economic Growth, and Economic Competition
Political Geography:
Africa and Botswana

26. The Conquest of Worldwide Inflation: Currency Competition and Its Implications for Interest Rates and the Yield Curve

Author:
Randall S. Kroszner
Publication Date:
07-2007
Content Type:
Journal Article
Journal:
The Cato Journal
Institution:
The Cato Institute
Abstract:
In the United States and in virtually every country around the world, inflation has declined, and in most countries dramatically so. In addition, the volatility of inflation and expectations of future inflation have also fallen significantly. I will call these changes experienced around the globe the conquest of worldwide inflation. I will begin by providing a few facts about the substantial improvement of inflation during roughly the past decade compared with the quarter century that preceded it. I will then try to understand why this remarkable decline in inflation has taken place. In particular, I argue that globalization, deregulation, and financial innovation, in part spurred by experiences of high inflation in the 1980s, have fostered currency competition that has led to improved central bank performance and, hence, the recent conquest of worldwide inflation. Friedrich Hayek (1976) had long ago advocated permitting greater competition among currencies, arguing that there would be a race to the top rather than a race to the bottom. Regardless of what one might think of Hayek’s policy proposals, technological change in a globalized and competitive marketplace, I believe, has increased competition among currencies issued by central banks.
Topic:
Economy, Inflation, Interest Rates, Currency, and Economic Competition
Political Geography:
Global Focus