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Competition and Firm Productivity: Evidence from Firm-Level Data

Author

Listed:
  • Marc Schiffbauer
  • Sandra Ospina

Abstract

This 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.

Suggested Citation

  • Marc Schiffbauer & Sandra Ospina, 2010. "Competition and Firm Productivity: Evidence from Firm-Level Data," IMF Working Papers 2010/067, International Monetary Fund.
    • Handle: RePEc:imf:imfwpa:2010/067
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