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Productivity and Convergence in a Panel of OECD Industries: Do Regulations and Institutions Matter?

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Author Info
Stefano Scarpetta
Thierry Tressel ()

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Abstract

We analyse the impact of innovation activity and product and labour market institutions on multi-factor productivity in a panel of 23 industries in 18 OECD countries using a novel harmonised database. First, we provide evidence of convergence in productivity levels within most industries across OECD countries. Convergence is however stronger in services than in manufacturing and, in the latter sector, it is weaker for high-tech industries. We also find evidence that the impact of innovation activity (proxied by R&D expenditure) on productivity depends on market structure and technological characteristics, with a stronger impact for technological leaders in high-tech industries. In addition, anti-competitive product market regulations are negatively associated with productivity performance. The negative effect is larger the further a country is from the technological frontier, because such regulations hinder the process of technology adoption. Finally, there is also evidence in the ...

Productivité et convergence sur un panel de secteurs industriels des pays de l'OCDE : Une analyse de l'impact des règlements et des institutions

Dans ce papier, nous analysons l’impact de l’innovation et de la réglementation sur le marche des biens, ainsi que les réglementation et institutions sur le marche du travail, sur la productivité multifactorielle. L'étude est réalisée sur un panel de 23 secteurs dans 18 pays de l’OCDE, à partir d’une nouvelle base de donnée harmonisée. Tout d’abord, nous montrons qu’il y a eu convergence des niveaux de productivité pour la plupart des industries considérées dans les pays de l'échantillon. Néanmoins, la convergence est plus rapide dans les secteurs des services que dans les secteurs manufacturiers; de plus, au sein de la manufacture, la convergence est faible pour les industries high-tech. Nous montrons aussi que l’impact de la recherche et développement (mesurant l’innovation) sur la productivité dépend de la structure de marche et des caracteristiques technologiques, avec un impact plus fort pour le leader technologique dans les secteurs high-tech. D’autre part, les ...

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Publisher Info
Paper provided by OECD Economics Department in its series OECD Economics Department Working Papers with number 342.

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Date of creation: 25 Sep 2002
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Handle: RePEc:oec:ecoaaa:342-en

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Related research
Keywords: productivity productivité labour markets innovation innovation convergence regulations on product convergence réglementation sur les marchés des biens et du travail

Find related papers by JEL classification:
L10 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - General
O3 - Economic Development, Technological Change, and Growth - - Technological Change
O4 - Economic Development, Technological Change, and Growth - - Economic Growth and Aggregate Productivity

Cited by:
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  1. Raquel FONSECA & Natalia UTRERO- GONZALEZ, 2005. "Financial Development, Labor and Market Regulations and Growth," Finance 0509016, EconWPA. [Downloadable!]
    Other versions:
  2. Raquel Fonseca & Natalia Utrero González, 2004. "Do Market Regulation and Financial Imperfections Affect Firm Size? New Empirical Evidence," CSEF Working Papers 119, Centre for Studies in Economics and Finance (CSEF), University of Salerno, Italy. [Downloadable!]
  3. Thierry Tressel, 2008. "Does Technological Diffusion Explain Australia's Productivity Performance?," IMF Working Papers 08/4, International Monetary Fund. [Downloadable!]
  4. Mark Sanders & Jaap Bos & Claire Economidou, 2007. "R&D over the Life Cycle," Working Papers 07-18, Utrecht School of Economics. [Downloadable!]
  5. Scarpetta, Stefano & Tressel, Thierry, 2004. "Boosting productivity via innovation and adoption of new technologies : any role for labor market institutions?," Policy Research Working Paper Series 3273, The World Bank. [Downloadable!]
  6. Erol Taymaz & Sule Ozler, 2004. "Labor Market Policies and EU Accession: Problems and Prospects for Turkey," ERC Working Papers 0405, ERC - Economic Research Center, Middle East Technical University, revised Mar 2004. [Downloadable!]
  7. Fernando Lera & Margarita Billón, 2004. "The North-South Digital Divide in Information and Communication Technologies Development: the Case for Spanish Regions," ERSA conference papers ersa04p307, European Regional Science Association. [Downloadable!]
  8. Raquel Fonseca & Natalia Utrero, 2006. "Employment Protection Laws, Barriers to Entrepreneurship, Financial Markets and Firm Size," Working Papers 454, RAND Corporation Publications Department. [Downloadable!]
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