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Product market regulation and macroeconomic performance : a review of cross-country evidence

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  • Schiantarelli, Fabio

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 effects 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 effects of product market regulation on mark-ups, firm dynamics, investment, employment, innovation, productivity, and output growth. The paper concludes with a summary of lessons learned from the econometric results.

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Bibliographic Info

Paper provided by The World Bank in its series Policy Research Working Paper Series with number 3770.

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Date of creation: 01 Nov 2005
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Handle: RePEc:wbk:wbrwps:3770

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Keywords: Economic Theory&Research; Labor Markets; Inequality; Infrastructure Regulation; Markets and Market Access;

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