Globalization and the Autonomy of Domestic Competition Policy: An Empirical Test on the World Airline Industry

Abstract

The globalization literature questions national autonomy in a world where MNEs spur increased international flows of capital and trade. This paper empirically tests whether globalization undermines the autonomy of domestic airline competition policy. A comprehensive panel data set, covering twenty-one nations over the 1983-92 period, yields two major findings: (1) globalization undermines domestic airline competition policy autonomy; (2) government institutions mediate globalization's impact.