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Product Market Reforms and Productivity: A Review of the Theoretical and Empirical Literature on the Transmission Channels

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  • Gaëtan Nicodème

    ()

  • Jacques-Bernard Sauner-Leroy

Abstract

Product market reforms are microeconomic structural reforms that aim to improve the functioning of product markets by increasing competition amongst producers of goods and services. Theoretical models suggest that regulation and reforms which liberalise or improve the functioning of markets can positively affect productivity through three different channels, namely a reallocation of scarce resources (allocative efficiency), an improvement in the utilisation of the production factors by firms (productive efficiency) and an incentive for firms to innovate to move to the modern technology frontier (dynamic efficiency). This paper reviews the theoretical and empirical literature on these three channels and discusses policy implications for the European Union. Copyright European Communities 2007

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Bibliographic Info

Article provided by Springer in its journal Journal of Industry, Competition and Trade.

Volume (Year): 7 (2007)
Issue (Month): 1 (March)
Pages: 53-72

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Handle: RePEc:kap:jincot:v:7:y:2007:i:1:p:53-72

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Web page: http://springerlink.metapress.com/link.asp?id=105724

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Keywords: product markets reforms; competition; productivity; efficiency; O12; O30; O40;

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References

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Citations

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Cited by:
  1. Bianka Dettmer, 2012. "The European Union's service directive: Contrasting ex ante estimates with empirical evidence," Jena Economic Research Papers 2012-019, Friedrich-Schiller-University Jena, Max-Planck-Institute of Economics.
  2. Michele Cincera & Olivia Galgau, 2005. "Impact of market entry and exit on EU productivity and growth performance," European Economy - Economic Papers 222, Directorate General Economic and Monetary Affairs (DG ECFIN), European Commission.
  3. Theodoros S. Papaspyrou, 2007. "Economic policy in EMU: community framework and national strategies - focus on Greece," LSE Research Online Documents on Economics 5631, London School of Economics and Political Science, LSE Library.
  4. Valkonen, Laura, 2006. "Deregulation as a Means to Increase Competition and Productivity," Discussion Papers 1014, The Research Institute of the Finnish Economy.
  5. Hans Pitlik & Margit Schratzenstaller, 2011. "Growth Implications of Structure and Size of Public Sectors," WIFO Working Papers 404, WIFO.
  6. Theodoros S. Papaspyrou, 2007. "Economic Policy in EMU: Community Framework and National Strategies – focus on Greece," GreeSE – Hellenic Observatory Papers on Greece and Southeast Europe 04, Hellenic Observatory, LSE.
  7. Edquist, Harald & Henrekson, Magnus, 2013. "Product Market Reforms and Incentives to Innovate in Sweden," Working Paper Series 986, Research Institute of Industrial Economics.

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