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Product Market Regulation and Macroeconomic Performance: A Review of Cross Country Evidence

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  • Schiantarelli, Fabio

    ()
    (Boston College)

Abstract

The main purpose of this paper is to provide a critical overview of the recent empirical contributions that use cross country data to study the effect of product market regulation and reform on a country's macroeconomic performance. After a brief review of the theoretical literature and of relevant micro-econometric evidence, the paper discusses the main data and methodological issues related to empirical work on this topic. It then critically evaluates the cross country evidence on the effect of product market regulation on mark-ups, firm dynamics, investment, employment, innovation productivity, and output growth. A summary of what we learn from the econometric results concludes the paper.

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Bibliographic Info

Paper provided by Institute for the Study of Labor (IZA) in its series IZA Discussion Papers with number 1791.

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Length: 48 pages
Date of creation: Oct 2005
Date of revision:
Publication status: published in: N. Loayza and L. Serven (eds): The Microeconomic Underpinning of Growth, The World Bank, 2010
Handle: RePEc:iza:izadps:dp1791

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Keywords: regulation; product market; performance; productivity; innovation; growth;

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