The effectiveness of technical assistance, socio-economic development and the absorptive capacity of competition authorities

Abstract

Using survey data on technical assistance projects that was collected by the International Competition Network's Competition Policy Implementation Working Group during 2004 and 2005, I estimate the effect of different types of technical assistance on several performance measures of recipient competition authorities. Moreover, I examine whether the impact of each type of technical assistance varies with the capacity of a recipient authority to absorb technical assistance (which I will refer to as absorptive capacity) and the socioeconomic development of the recipient country. A clear pattern of results emerges. Not all forms of technical assistance are alike in their effects and the impact on recipient authority performance appears to vary systematically with absorptive capacity and socio-economic development. Taken at face value, and supposing that maximizing the positive effect on recipient authority performance is the sole objective of a technical assistance programme in competition law and enforcement, these findings have implications for the mix of technical assistance activities that should be offered to competition authorities. These findings may, therefore, be of interest to suppliers of technical assistance which include established competition authorities, aid ministries, and international organizations.