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Productivity Gains from Services Liberalization in Europe

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  • Bena Jan
  • Ondko Peter
  • Vourvachaki Evangelia

Abstract

As part of its Single Market Program the European Commission commanded the liberalization and regulatory harmonization of utilities, transport and telecommunication network services. This paper investigates whether and how this process affected the productivity of European network firms. We exploit the variation in the timing and degree of liberalization efforts across countries/industries and find that liberalization increased firm-level productivity, but had no reallocation impact. Based on our estimates, the average firm-level productivity gains from liberalization amount to 38 percent of the actual average within-firm productivity change in network industries. The results provide support for the growth-promoting role of liberalization efforts.

Suggested Citation

  • Bena Jan & Ondko Peter & Vourvachaki Evangelia, 2011. "Productivity Gains from Services Liberalization in Europe," EERC Working Paper Series 11/15e, EERC Research Network, Russia and CIS.
    • Handle: RePEc:eer:wpalle:11/15e
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    3. Sophia P. Dimelis & Sotiris K. Papaioannou, 2016. "Entry Regulation, Public Ownership and TFP Growth: Industry-Level Evidence from South European Countries," Manchester School, University of Manchester, vol. 84(6), pages 749-770, December.

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    More about this item

    JEL classification:

    • D24 - Microeconomics - - Production and Organizations - - - Production; Cost; Capital; Capital, Total Factor, and Multifactor Productivity; Capacity
    • K23 - Law and Economics - - Regulation and Business Law - - - Regulated Industries and Administrative Law
    • L11 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Production, Pricing, and Market Structure; Size Distribution of Firms
    • L51 - Industrial Organization - - Regulation and Industrial Policy - - - Economics of Regulation

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