Economic dependence: ecuadorian case

Authors

  • H. Nicolás Acosta González Facultad de Economía en la PontificiaUniversidad Católica del Ecuador
  • Daniel D. Jaramillo Calderón Secretaria Nacional de Planificación y Desarrollo de Ecuador.
  • Ramiro F. Mejía Pesántez Superintendencia de Economía Popular y Solidaria.

DOI:

https://doi.org/10.25097/rep.n24.2016.02

Keywords:

Economic dependence, dependence degree, substitution cost, competition law, distributionchain.

Abstract

This paper presents a theoretical and practical analysis  of the economic dependence in Ecuador. Ecuadorian competition law lacks of a methodology to identify dependence among two undertakings. This research proposes a solution, which has been addressed from an exhaustive description of international regulations and comparative competition cases. The result of this analysis led to establish a three-step process. The first is to define the relevant market; the second, study the degree dependence; and the third, is to identify those signatures having a higher substitution cost. Subsequently, the methodology was applied in the distribution chain, where was possible to identify 321 dependent firms. Finally, by a model of binary response, the investigation exposes the factors that causes dependence; the main factors are: diversification and low value added in products.

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Published

2017-06-16

How to Cite

Acosta González, H. N., Jaramillo Calderón, D. D., & Mejía Pesántez, R. F. (2017). Economic dependence: ecuadorian case. Economy and Politics Journal, (24), 34–63. https://doi.org/10.25097/rep.n24.2016.02

Issue

No. 24 (2016): July/December

Section

Artículos

License

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