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Regulation and Productivity

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  • Charles Dufour
  • Paul Lanoie
  • Michel Patry

Abstract

We investigate the impact of occupational safety and health (OSH) and environmental regulation on the rate of growth of total factor productivity (TFP) in the Quebec manufacturing sector during the 1985–88 period. Our results show that environmental regulation and OSH protective reassignments (a prevention policy with respect to OSH) have led to a reduction in productivity growth, while the presence of mandatory prevention programs and of fines for infractions to OSH rules have led to an increase in productivity growth. Interestingly, this is, to our knowledge, the first result showing that OSH regulation may have had a positive effect on productivity growth. Copyright Kluwer Academic Publishers 1998

Suggested Citation

  • Charles Dufour & Paul Lanoie & Michel Patry, 1998. "Regulation and Productivity," Journal of Productivity Analysis, Springer, vol. 9(3), pages 233-247, March.
  • Handle: RePEc:kap:jproda:v:9:y:1998:i:3:p:233-247
    DOI: 10.1023/A:1018387021327
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    6. Paul Lanoie, 1992. "The Impact of Occupational Safety and Health Regulation on the Risk of Workplace Accidents: Quebec, 1983-87," Journal of Human Resources, University of Wisconsin Press, vol. 27(4), pages 643-660.
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    Cited by:

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    2. Ambec, Stefan & Barla, Philippe, 2007. "Survol des fondements théoriques de l’hypothèse de Porter," L'Actualité Economique, Société Canadienne de Science Economique, vol. 83(3), pages 399-413, septembre.
    3. International Monetary Fund, 2001. "Bank Reform and Bank Efficiency in Pakistan," IMF Working Papers 2001/138, International Monetary Fund.
    4. Albrizio, Silvia & Kozluk, Tomasz & Zipperer, Vera, 2017. "Environmental policies and productivity growth: Evidence across industries and firms," Journal of Environmental Economics and Management, Elsevier, vol. 81(C), pages 209-226.
    5. Abhiman Das, 2004. "Risk and Productivity Change of Public Sector Banks," Industrial Organization 0411002, University Library of Munich, Germany.
    6. Julia Bahlmann & Paul J.J. Welfens, 2021. "Environmental Policy Stringency and Foreign Direct Investment: New Insights from a Gravity Model Approach," EIIW Discussion paper disbei294, Universitätsbibliothek Wuppertal, University Library.
    7. Anabel Zárate-Marco & Jaime Vallés-Giménez, 2015. "Environmental tax and productivity in a decentralized context: new findings on the Porter hypothesis," European Journal of Law and Economics, Springer, vol. 40(2), pages 313-339, October.
    8. Abhiman Das & Ashok Nag & Subhash Ray, 2004. "Liberalization, Ownership, and Efficiency in Indian Banking: A Nonparametric Approach," Working papers 2004-29, University of Connecticut, Department of Economics.
    9. Erik Hille & Patrick Möbius, 2019. "Environmental Policy, Innovation, and Productivity Growth: Controlling the Effects of Regulation and Endogeneity," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 73(4), pages 1315-1355, August.
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    12. Anthony N. Rezitis, 2006. "Productivity Growth in the Greek Banking Industry: A Non-Parametric Approach," Journal of Applied Economics, Taylor & Francis Journals, vol. 9(1), pages 119-138, May.
    13. Yang, Zhenbing & Fan, Meiting & Shao, Shuai & Yang, Lili, 2017. "Does carbon intensity constraint policy improve industrial green production performance in China? A quasi-DID analysis," Energy Economics, Elsevier, vol. 68(C), pages 271-282.
    14. Dietrich Earnhart & Dylan G. Rassier, 2016. "“Effective regulatory stringency” and firms’ profitability: the effects of effluent limits and government monitoring," Journal of Regulatory Economics, Springer, vol. 50(2), pages 111-145, October.
    15. Vladislav N. Rutskiy & Maria V. Osipenko, 2020. "Green Economy as a Labor Productivity Factor in the Manufacturing Industry of European Union Countries," Finansovyj žhurnal — Financial Journal, Financial Research Institute, Moscow 127006, Russia, issue 4, pages 69-84, August.
    16. Rassier, Dylan G. & Earnhart, Dietrich, 2015. "Effects of environmental regulation on actual and expected profitability," Ecological Economics, Elsevier, vol. 112(C), pages 129-140.
    17. Bigerna, Simona & D'Errico, Maria Chiara & Polinori, Paolo, 2020. "Heterogeneous impacts of regulatory policy stringency on the EU electricity Industry:A Bayesian shrinkage dynamic analysis," Energy Policy, Elsevier, vol. 142(C).
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    20. Philippe Barla & Sergio Perelman, 2005. "Sulphur emissions and productivity growth in industrialised countries," Annals of Public and Cooperative Economics, Wiley Blackwell, vol. 76(2), pages 275-300, June.
    21. Bruce Domazlicky & William Weber, 2004. "Does Environmental Protection Lead to Slower Productivity Growth in the Chemical Industry?," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 28(3), pages 301-324, July.
    22. Das, Abhiman & Ghosh, Saibal, 2006. "Size, Non-performing Loan, Capital and Productivity Change: Evidence from Indian State-owned Banks," MPRA Paper 17396, University Library of Munich, Germany.
    23. Tracy Van Holt & Matt Statler & Ulrich Atz & Tensie Whelan & Mara van Loggerenberg & James Cebulla, 2020. "The cultural consensus of sustainability‐driven innovation: Strategies for success," Business Strategy and the Environment, Wiley Blackwell, vol. 29(8), pages 3399-3409, December.

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