Competition and Firm Productivity
AbstractThis paper presents empirical evidence on the impact of competition on firm productivity. Using firm-level observations from the World Bank Enterprise Survey database, we find a positive and robust causal relationship between our proxies for competition and our measures of productivity. We also find that countries that implemented product-market reforms had a more pronounced increase in competition, and correspondingly, in productivity: the contribution to productivity growth due to competition spurred by product-market reforms is around 12-15 percent.
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Bibliographic InfoPaper provided by International Monetary Fund in its series IMF Working Papers with number 10/67.
Date of creation: 01 Mar 2010
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This paper has been announced in the following NEP Reports:
- NEP-ALL-2010-03-28 (All new papers)
- NEP-BEC-2010-03-28 (Business Economics)
- NEP-COM-2010-03-28 (Industrial Competition)
- NEP-EFF-2010-03-28 (Efficiency & Productivity)
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