DEPENDENCIA ECONÓMICA: EL CASO ECUATORIANO

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.