What Is Independence For? Measuring the Impact of Independence on Competition Policy Enforcement

Abstract

In this chapter, the second research question of the book is analysed: does independence make a difference in NCAs’ regulatory outcome? The chapter presents previous studies on the impact of independence on competition policy enforcement, focusing in particular on how NCA performance has been measured. It then hypothesizes that NCA independence may have an impact on foreign direct investment (FDI) and inflation. The regression analysis does not detect any effect of independence on these indicators, and several robustness checks show that independence does not seem to affect the countries’ productivity and NCA reputation either. An analysis of interviews with members of NCAs and competition policy experts, aimed at clarifying the regressions’ findings, concludes the empirical analysis of the chapter.