IDEAS home Printed from https://ideas.repec.org/a/taf/jpolrf/v12y2009i2p145-162.html
   My bibliography  Save this article

Does competition improve productivity in developing countries?

Author

Listed:
  • Khalid Sekkat

Abstract

Using the manufacturing sector data at the three-digit level, the paper examines whether the degree of competition improves productivity in developing countries. The degree of competition is measured through markups while productivity is measured through total factor productivity (TFP) and labor productivity. All are computed by industries. Taking account of endogeneity issues and of the role of relevant control variables, the results show that in Jordan and Morocco, markup has a significant and negative impact on productivity growth. In Egypt, while markup does not seem to affect productivity growth, a decrease in the share of state-owned enterprises (SOEs) in a given industry has a significant and positive impact on productivity growth. In general, the existence of State-Owned Enterprises is an obstacle to competition. We conclude that the greater the degree of competition, the higher the productivity in the three countries.

Suggested Citation

  • Khalid Sekkat, 2009. "Does competition improve productivity in developing countries?," Journal of Economic Policy Reform, Taylor & Francis Journals, vol. 12(2), pages 145-162.
  • Handle: RePEc:taf:jpolrf:v:12:y:2009:i:2:p:145-162
    DOI: 10.1080/17487870902872946
    as

    Download full text from publisher

    File URL: http://www.tandfonline.com/doi/abs/10.1080/17487870902872946
    Download Restriction: Access to full text is restricted to subscribers.

    As the access to this document is restricted, you may want to look for a different version below or search for a different version of it.

    Other versions of this item:

    References listed on IDEAS

    as
    1. Abdelhak Senhadji, 2000. "Sources of Economic Growth: An Extensive Growth Accounting Exercise," IMF Staff Papers, Palgrave Macmillan, vol. 47(1), pages 1-6.
    2. Kee, Hiau Looi & Hoekman, Bernard, 2007. "Imports, entry and competition law as market disciplines," European Economic Review, Elsevier, vol. 51(4), pages 831-858, May.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Anna M. Ferragina & Fernanda Mazzotta & Khalid Sekkat, 2016. "Financial constraints and productivity growth across the size spectrum: microeconomic evidence from Morocco," Eurasian Business Review, Springer;Eurasia Business and Economics Society, vol. 6(3), pages 361-381, December.

    More about this item

    Keywords

    competition; productivity; LDCs;

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:taf:jpolrf:v:12:y:2009:i:2:p:145-162. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Chris Longhurst). General contact details of provider: http://www.tandfonline.com/GPRE19 .

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.