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Competition and Firm Productivity: Evidence from Portugal

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  • Pedro Carvalho

Abstract

This paper presents empirical evidence on the impact of competition on firm productivity for the Portuguese economy. To that effect, firm-level panel data comprising information between 2010 and 2015 gathered from the Integrated Business Accounts System (Portuguese acronym: SCIE) is used. The database enables the construction of economic and financial indicators, which allow for isolating the impact of competition on firm-level productivity. We find a positive relationship between competition and both total factor productivity and labor productivity. This relationship is found to be robust to different specifications and in accordance with the results in the literature obtained for other countries.

Suggested Citation

  • Pedro Carvalho, 2018. "Competition and Firm Productivity: Evidence from Portugal," GEE Papers 00108, Gabinete de Estratégia e Estudos, Ministério da Economia, revised Jul 2018.
    • Handle: RePEc:mde:wpaper:00108
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    File URL: https://www.gee.gov.pt//RePEc/WorkingPapers/GEE_PAPERS_108.pdf
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    References listed on IDEAS

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    More about this item

    Keywords

    Competition; Productivity; Portugal;
    All these keywords.

    JEL classification:

    • D40 - Microeconomics - - Market Structure, Pricing, and Design - - - General
    • D24 - Microeconomics - - Production and Organizations - - - Production; Cost; Capital; Capital, Total Factor, and Multifactor Productivity; Capacity
    • O47 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - Empirical Studies of Economic Growth; Aggregate Productivity; Cross-Country Output Convergence

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