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Productivity Gains from Services Liberalization in Europe

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  • Jan Bena
  • Peter Ondko
  • Evangelia Vourvachaki
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Abstract

As part of the Single Market Program the European Commission commanded the liberalization and regulatory harmonization of utilities, transport and telecommunication services. This paper investigates whether and how this process affected the productivity of European network firms. Exploiting the variation in the timing and degree of liberalization efforts across countries and industries, we find that liberalization increased firm-level productivity but had no reallocation impact. Based on our estimates, the average firm-level productivity gain from liberalization amounts to 38 percent of the average total within-firm productivity gain in network industries. The results underscore the growth-promoting role of liberalization efforts.

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Bibliographic Info

Paper provided by The Center for Economic Research and Graduate Education - Economic Institute, Prague in its series CERGE-EI Working Papers with number wp452.

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Date of creation: Dec 2011
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Handle: RePEc:cer:papers:wp452

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Keywords: productivity; liberalization; allocative efficiency; services; firm-level data;

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Cited by:
  1. Tarr, David, 2012. "Impact of services liberalization on industry productivity, exports and development : six empirical studies in the transition countries," Policy Research Working Paper Series 6023, The World Bank.

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