Upstream product market regulations, ICT, R&D and productivity
AbstractOur study aims at assessing the actual importance of the two main channels usually contemplated in the literature through which upstream sector anticompetitive regulations may impact productivity growth: business investments in R&D and in ICT. We thus precisely try to estimate what are the specific impacts of these two channels and their shares in total impact as against alternative channels of investments in other forms of intangible capital such as improvements in skills, management and organization. For this, we specify an extended production function relating productivity explicitly to R&D and ICT capital as well as to upstream regulations, and two factor demand functions relating R&D and ICT capital to upstream regulations. These relations are estimated on a panel of 14 OECD countries and 13 industries over the period 1987-2007. Our estimates confirm the results of previous similar studies finding that the impact of upstream regulations on total factor productivity can be sizeable, and they provide evidence that a good part of the total impact, though not a predominant one, goes through both investments in ICT and R&D, and particularly the latter.
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Bibliographic InfoPaper provided by Banque de France in its series Working papers with number 441.
Length: 60 pages
Date of creation: 2013
Date of revision:
Productivity; Growth; Regulations; Competition; Catch-up; R&D; ICT;
Other versions of this item:
- Gilbert Cette & Jimmy Lopez & Jacques Mairesse, 2013. "Upstream Product Market Regulations, ICT, R&D and Productivity," Working Papers 2013-37, Centre de Recherche en Economie et Statistique.
- Gilbert Cette & Jimmy Lopez & Jacques Mairesse, 2013. "Upstream Product Market Regulations, ICT, R&D and Productivity," NBER Working Papers 19488, National Bureau of Economic Research, Inc.
- O43 - Economic Development, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - Institutions and Growth
- L5 - Industrial Organization - - Regulation and Industrial Policy
- O33 - Economic Development, Technological Change, and Growth - - Technological Change; Research and Development; Intellectual Property Rights - - - Technological Change: Choices and Consequences; Diffusion Processes
- O57 - Economic Development, Technological Change, and Growth - - Economywide Country Studies - - - Comparative Studies of Countries
- L16 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Industrial Organization and Macroeconomics; Macroeconomic Industrial Structure
- C23 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Models with Panel Data; Spatio-temporal Models
This paper has been announced in the following NEP Reports:
- NEP-ALL-2013-08-23 (All new papers)
- NEP-CSE-2013-08-23 (Economics of Strategic Management)
- NEP-EFF-2013-08-23 (Efficiency & Productivity)
- NEP-ICT-2013-08-23 (Information & Communication Technologies)
- NEP-IND-2013-08-23 (Industrial Organization)
- NEP-INO-2013-08-23 (Innovation)
- NEP-KNM-2013-08-23 (Knowledge Management & Knowledge Economy)
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- Peter Jarrett, 2012. "The Long-term Outlook for Productivity and Per Capita Income Growth for Canada: A Comparison with Selected G-20 Countries," International Productivity Monitor, Centre for the Study of Living Standards, vol. 24, pages 85-96, Fall.
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