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Macroeconomic effects of ownership structure in OECD countries

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  • Donatella Gatti

    (IZA - Institute for the Study of Labor, CEPREMAP - Centre pour la recherche économique et ses applications - CEPREMAP, PSE - Paris-Jourdan Sciences Economiques - CNRS : UMR8545 - École des Hautes Études en Sciences Sociales [EHESS] - Ecole des Ponts ParisTech - Ecole normale supérieure de Paris - ENS Paris, EEP-PSE - Ecole d'Économie de Paris - Paris School of Economics - Ecole d'Économie de Paris, CEPN - Centre d'économie de l'Université de Paris Nord - CNRS : UMR7115 - Université Paris XIII - Paris Nord)

Abstract

The paper investigates the impact of ownership concentration on GDP growth, for a sample of 18 OECD countries over the period 1980 to 2004. The econometric analysis shows that more concentrated ownership can speed up growth, for countries approaching the technological frontier, provided that labour market regulation is sufficiently tight. In the absence of employment regulation, the logic of financial markets discipline applies and dispersed ownership appears as more favorable for growth. Based on econometric results, impact coefficients are calculated allowing to evaluate the growth points gained/lost following a given change in ownership concentration. This exercise reveals that a reform in the domain of ownership structure can yield sizeable effects in terms of growth. Importantly, these effects are unequally distributed across countries: Anglo-Saxon countries would take more advantage of deregulation (i.e. increased dispersion of ownership in a context of deregulated labour markets) while continental European countries would benefit more from increased concentration of ownership in a context of reinforced labour regulation.

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Bibliographic Info

Paper provided by HAL in its series CEPN Working Papers with number halshs-00586850.

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Date of creation: Mar 2008
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Handle: RePEc:hal:cepnwp:halshs-00586850

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Keywords: ownership concentration ; labour market regulation ; growth ; developed countries;

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  1. Paul Conway & Giuseppe Nicoletti, 2006. "Product Market Regulation in the Non-Manufacturing Sectors of OECD Countries: Measurement and Highlights," OECD Economics Department Working Papers 530, OECD Publishing.
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Citations

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Cited by:
  1. Lars P. Feld & Jost H. Heckemeyer, 2011. "Fdi And Taxation: A Meta‐Study," Journal of Economic Surveys, Wiley Blackwell, vol. 25(2), pages 233-272, 04.
  2. Block, Joern & Spiegel, Frank, 2011. "Family Firms and Regional Innovation Activity: Evidence from the German Mittelstand," MPRA Paper 28604, University Library of Munich, Germany.
  3. Simon Deakin & Prabirjit Sarkar, 2008. "Assessing the Long-Run Economic Impact of Labour Law Systems: A theoretical Reappraisal and Analysis of New Time Series Data," ESRC Centre for Business Research - Working Papers wp367, ESRC Centre for Business Research.

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