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Competition Policy and Productivity Growth: An Empirical Assessment

Author

Listed:
  • Paolo Buccirossi

    (LEAR)

  • Lorenzo Ciari

    (European Bank for Reconstruction and Development)

  • Tomaso Duso

    (Düsseldorf Institute for Competition Economics, Heinrich-Heine University)

  • Giancarlo Spagnolo

    (SITE, Tor Vergata, and CEPR, Stockholm School of Economics)

  • Cristiana Vitale

    (OECD)

Abstract

This paper estimates the impact of competition policy on total factor productivity growth for 22 industries in twelve OECD countries over 1995 to 2005. We find a positive and significant effect of competition policy as measured by created indexes. We provide results based on instrumental variables estimators and heterogeneous effects to support the causal nature of the established link. The effect is particularly strong for specific aspects of competition policy related to its institutional setup and antitrust activities. It is also strengthened by good legal systems, suggesting complementarities between competition policy and the efficiency of law enforcement institutions. © 2013 The President and Fellows of Harvard College and the Massachusetts Institute of Technology.

Suggested Citation

  • Paolo Buccirossi & Lorenzo Ciari & Tomaso Duso & Giancarlo Spagnolo & Cristiana Vitale, 2013. "Competition Policy and Productivity Growth: An Empirical Assessment," The Review of Economics and Statistics, MIT Press, vol. 95(4), pages 1324-1336, October.
  • Handle: RePEc:tpr:restat:v:95:y:2013:i:4:p:1324-1336
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    More about this item

    Keywords

    competition policy; productivity growth; TFP; institutions; deterrence; OECD;

    JEL classification:

    • L4 - Industrial Organization - - Antitrust Issues and Policies
    • K21 - Law and Economics - - Regulation and Business Law - - - Antitrust Law
    • O4 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity
    • C23 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Models with Panel Data; Spatio-temporal Models

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