EU ANTITRUST: HOT TOPICS & NEXT STEPS

Prague, Czechia

EU ANTITRUST: HOT TOPICS & NEXT STEPS 2022

on ruling of law in any segment or institution and it is logically expected to find a negative correlation between level of corruption and the effectiveness of competition law in any country or economy. Ningrum and Mahmul in their works claim that corruption is believed to correlate with state’s economy. The correlation could be notified in terms of low investment rate and the slowdown economy of the state. Corruption is also triggered the high government expenditure due to the high cost of procurement which at the end will generate an increase in state debt. While for consumer welfare, high corruption will cause an impact on poverty and slow economic growth (Sirait and Siregar, 2018, p. 135). 3. Methodological framework This paper will present the intensity of application competition law relation with the main components that can impact on it. It will set up trend comparison between some categories and values and in the second stage the measure of the correlation between the intensity of local competition, extent of market dominance, GDP level, FDI level, and the level of corruption and an index of the application competition law. Since competition law is relatively new in Bosnia and Herzegovina and involved economic analysis, the application of an empirical method is essential. Hence the study involved data collection fromThe Council of Competition BiH and data from World Economic Forum (WEF, 2021), World Bank (WB, 1995–2020), International Monetary Fund (IMF), and Corruption Perception Index by Transparency International. The data collection will be oriented to the period between 2007 and 2017 according to the available and reliable data for named categories above. Figure 1 presents a conceptual framework regarding the key influencing factors that determine the effectiveness of the competition law enforcement in general with a special application of this model in Bosnia and Herzegovina in the period from 2007 to 2017 in accordance with available data. Namely, it is expected that the effectiveness of the the competition law enforcement is positively correlated with the dynamics of GDP and of course FDI dynamics and the quality of the education system, while the correlation with the degree of corruption should be negative. In this regard, the analysis of these indicators will be performed within the period with discussion of the results and their interpretation in the context of the specifics of the small open transitional economy, such as the economy of Bosnia and Herzegovina.

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