International corporate governance - Product market competition

Table: International corporate governance - Tentative characterizations of legal and empirical state of large firm product market competition in various countries as of 1980-1995:

Developing countries
Germany
Japan
Anglo-American countries
Denmark

Introduction: Some of the characterizations can be found in Shleifer and Vishny [1996, pages 49-55]. Precautionary statement: The first version of this table was primarily made out of memory and consequently it lacks adequate references and may contain errors about the actual legal and empirical state of the different institutions. As time passes more references will be added.

Tentative characterizations of legal and empirical state of large firm product market competition in developing countries as of 1980-1995

A) Anti-trust legislation.

Legal state: Very few and weak anti-trust laws.

Empirical state: Many markets are highly monopolized.

B) Laws on trade.

Legal state: Typically many trade barriers but on this area thing are changing and trade laws and becoming increasingly liberal.

Empirical state: The competition is increasing because of the trend towards more liberal trade laws.

Tentative characterizations of legal and empirical state of large firm product market competition in Germany as of 1980-1995

A) Anti-trust legislation.

Legal state: Semi-tough laws: The anti-trust legislation is getting tougher all the time especially as a result of EU legislation, but it is not at all as tough as the Anglo-American governance system.

Empirical state: In many markets competition is the rule.

B) Laws on trade.

Legal state: The trade system is very liberal.

Empirical state: Free trade is the rule.

Tentative characterizations of legal and empirical state of large firm product market competition in Japan as of 1980-1995

A) Anti-trust legislation.

Legal state: Semi-tough laws: The anti-trust legislation is getting tougher all the time.

Empirical state: In many markets competition is the rule.

B) Laws on trade.

Legal state: Trade laws are getting more liberal.

Empirical state: In many markets free trade is the rule.

Tentative characterizations of legal and empirical state of large firm product market competition in Anglo-American countries as of 1980-1995

A) Anti-trust legislation.

Legal state: The anti-trust legislation is tougher and implemented more ferocious than in any other governance system.

Empirical state: In most markets competition is the rule.

B) Laws on trade.

Legal state: The trade laws are among the most liberal in the world.

Empirical state: In most markets free trade is the rule.

Tentative characterizations of legal and empirical state of large firm product market competition in Denmark as of 1980-1995

A) Anti-trust legislation.

Empirical state: In many markets competition is the rule.

B) Laws on trade.

Legal state: The trade system is very liberal.

Empirical state: Many markets are global because of free trade is the rule.