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ABOUT THE SUBMISSIONS

The ability of firms to contest and freely compete in product markets is acknowledged to be an important factor in the effective functioning of markets. Existing evidence suggests that a lack of competition in the market limits access to the benefits of growth for poor and vulnerable groups. However, the literature in this area remains in its infancy and there are a number of topics deserving further research.

Applicants are therefore encouraged to make submissions of research papers which will contribute to the body of knowledge on this topic. Initial submissions will be in the form of an extended abstract. Final submissions will then be reviewed by a committee of experts in the field of competition policy, competition law and industrial organization.

Authors of selected papers will become members of the Global Expert Network on Competition Policy and Shared Prosperity.* The selected papers (in the form of either completed papers, where available, or a detailed research proposal with initial results) will be presented at the Inaugural International Conference of the World Bank Group-OECD Global Expert Network on Competition Policy to be held in June 2015. The papers will be featured in a joint World Bank Group-OECD publication.

This call for papers invites proposals from policy-makers, practitioners, academics and researchers on topics relevant to the conference theme of promoting effective competition policies for shared prosperity and inclusive growth (i.e. linking economic growth, reduced inequality and poverty reduction). Papers may consider issues at the international, national, sub-national and institutional level.

Several topics could potentially be analyzed that may provide evidence of the importance of competition policy for shared prosperity, including:

• Effects of competition policy and pro-competition regulatory changes:
  • Empirical analysis of the effect of pro-competition reforms on variables such as employment, entrepreneurship and wage-distribution, across households with differing socio-economic characteristics or across firms of different size (small- and medium-sized enterprises as compared to larger firms).
  • Empirical assessment of the effects of discriminatory policies and rules favorable towards incumbents on key economic variables.
  • Empirical assessment of the effects of institutional design of public bodies that promote and protect competition policy on market outcomes.
  • The impact of enhanced competition law enforcement action and better competition legal frameworks on improving consumer welfare and increasing shared prosperity and inclusive growth.
• Evaluation of effects of (lack of) competition, as measured by other variables or policy changes:
  • Methodologically rigorous estimation of cartel overcharges and their impact on welfare distribution across society as a whole, with a focus on consumers.
  • Effects of changes in the level of market contestability in terms of savings for consumers and businesses, shared prosperity and inclusive growth.
  • General equilibrium analysis of the effect of higher prices resulting from lack of competition on poverty, incorporating the second-order effects of market power on employment and factor incomes.
  • Empirical testing of whether the economic and social outcomes of non-competitive markets predicted by theoretical models hold for different sectors in low and middle income countries.
  • Assessment of the relationship between greater trade openness and the degree of competition in domestic markets in their effects on distributional outcomes of trade and competition policies.
  • Assessment of the impact of competition distortions in input markets on shared prosperity and inclusive growth.
  • Impact evaluation of regulations and policies that affect market competition.

Where possible, submissions are encouraged to identify specific channels of impact on the bottom 40 percent of the income distribution, including:

• The impact on the bottom 40 percent of the income distribution as consumers – For example, using various measures of consumer welfare.
• The impact on the bottom 40 percent of the income distribution as producers – For example, using measures such as income, entry and growth of MSMEs, productivity and innovation.
• The impact on the bottom 40 percent of the income distribution as employees – For example, using measures such as employment, wages and wage inequality (for example across skill level, gender, sector, etc.).