Do Product Market Regulations in Upstream Sectors Curb Productivity Growth? Panel Data Evidence For OECD Countries

Renaud Bourlès; Gilbert Cette; Jimmy Lopez; Jacques Mairesse; Giuseppe Nicoletti

doi:10.1162/rest_a_00338

Do Product Market Regulations in Upstream Sectors Curb Productivity Growth? Panel Data Evidence For OECD Countries

Renaud Bourlès¹; Gilbert Cette²; Jimmy Lopez³; Jacques Mairesse⁴; Giuseppe Nicoletti⁵

¹ Ecole Centrale Marseille (Aix-Marseille School of Economics), CNRS and EHESS · ² Banque de France and Aix-Marseille University (Aix-Marseille School of Economics), CNRS, and EHESS · ³ Banque de France and Université de Bourgogne · ⁴ CREST-ENSAE, University of Maastricht, Banque de France, and NBER · ⁵ OECD Economics Department

The Review of Economics and Statistics 2013 open access

Abstract We identify the impact of intermediate goods markets imperfections on productivity downstream. Our empirical specification is based on a model of multifactor productivity (MFP) growth in which the effects of upstream competition can vary with distance to frontier. This model is estimated on a panel of fifteen OECD countries and twenty industries over 1985 to 2007. Competitive pressures are proxied with industry product market regulation data. We find evidence that anticompetitive upstream regulations have significantly curbed MFP growth over the past fifteen years, and more strongly so for observations that are close to the productivity frontier.

DOI: 10.1162/rest_a_00338
Volume: 95 (5)
Pages: 1750-1768
Language: en
Export: BibTeX
Sources: crossref openalex