Competition Enforcement and Efficiency in Relevant Markets: A Case of Tea Agro Markets in Tanzania

Mlulla, Allan Syril (2015) Competition Enforcement and Efficiency in Relevant Markets: A Case of Tea Agro Markets in Tanzania. ["eprint_fieldopt_thesis_type_phd" not defined] thesis, The Open University Of Tanzania.

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Abstract

The study investigated the linkage between sectoral and competition laws in providing for plausible competition enforcement models in the tea sector using the CAF. Field survey was conducted on green tea leaves farmers and buyers in Rungwe, Mufindi and Muheza. Specific objectives were to (i) assess the adequacy of provisions of the legal and regulatory framework in providing for pro competition markets(ii) determine gross margins and examine their variations (iii) assess and compare the performance (GM) (iv) identify the factors affecting pro competition functioning of the identified relevant markets. Data analysis using SPSS entailed frequencies, means and cross tabulations, indexing, HHI, ANOVA, Chi square and ttest were also used to test robustness of the statistics. A GLS multiple regression model was used to identify factors influencing farmers’ GM. Results reveal that there is need for economic regulation and that the current legal provisions are inadequate to provide for pro competition markets. The identified relevant markets are the buying and selling of green tea leaves in (i) Rungwe (ii) Mufindi and (iii) Muheza. Results show existence of abuse of dominance and unnotified mergers in Rungwe, anti-competitive agreements in Muheza and Mufindi, barriers to entry and vested interests in all the three. Results also showed that several factors do affect pro competition functioning of the three markets. It was recommended that there should developed comprehensive legal and regulatory framework to provide for economic regulation in the three markets. The identified anti-competitive issues should be pursued by the FCC by way of enforcement whereas non-enforcement issues should be pursued as matters of competition advocacy.

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