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The Potential Impact of Pro-competitive Regulatory Reforms on Productivity and Growth in Canada

Author

Listed:
  • Gilbert Cette
  • Jimmy Lopez
  • Giuseppe Nicoletti
  • Océane Vernerey

Abstract

Using international data on anticompetitive regulations and productivity from 15 countries and a large number of industries over 1996-2021 (EUKLEMS & INTANProd; OECD PMR database), this article models how regulations in upstream non-manufacturing sectors (energy, transport, trade, professional services) affect downstream productivity. Reforms reducing regulation in these sectors transmit to the rest of the economy through input-output linkages. The study finds that if Canada adopted best-practice regulations internationally (especially in professional services and retail distribution), GDP per capita could rise 6.5-10 per cent in the long run. These very large potential gains highlight regulation as an important constraint on Canadian productivity.

Suggested Citation

  • Gilbert Cette & Jimmy Lopez & Giuseppe Nicoletti & Océane Vernerey, 2025. "The Potential Impact of Pro-competitive Regulatory Reforms on Productivity and Growth in Canada," International Productivity Monitor, Centre for the Study of Living Standards, vol. 49, pages 3-40, Fall.
    • Handle: RePEc:sls:ipmsls:v:49:y:2025:1
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