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Competition in the Service Sector and the Performances of Manufacturing Firms: Does Liberalization Matter?

  • Emanuele Forlani

Services form an increasing proportion of the inputs used in manufacturing. We explore empirically whether competition in the service sector affects downstream manufacturing firms’ efficiency, via the inputs used. Using French micro-data for services, we calculate proxies for competition in services, and then use Input-Output matrices to link services to manufacturing sectors. we find that there is a positive and significant relation between the extent of competition and firms’ productivity.

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File URL: http://www.cesifo-group.de/portal/page/portal/DocBase_Content/WP/WP-CESifo_Working_Papers/wp-cesifo-2010/wp-cesifo-2010-02/cesifo1_wp2942.pdf
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Paper provided by CESifo Group Munich in its series CESifo Working Paper Series with number 2942.

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Date of creation: 2010
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Handle: RePEc:ces:ceswps:_2942
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  1. Mary Amiti & Jozef Konings, 2007. "Trade Liberalization, Intermediate Inputs, and Productivity: Evidence from Indonesia," American Economic Review, American Economic Association, vol. 97(5), pages 1611-1638, December.
  2. Tor Jakob Klette & Zvi Griliches, 1994. "The Inconsistency of Common Scales Estimators when Output Prices are Unobserved and Endogenous," Discussion Papers 127, Research Department of Statistics Norway.
  3. Richard Blundell & Steve Bond, 1995. "Initial conditions and moment restrictions in dynamic panel data models," IFS Working Papers W95/17, Institute for Fiscal Studies.
  4. Jan De Loecker, 2004. "Do Exports Generate Higher Productivity? Evidence from Slovenia," LICOS Discussion Papers 15104, LICOS - Centre for Institutions and Economic Performance, KU Leuven.
  5. Andrew B. Bernard & J. Bradford Jensen, 1997. "Exceptional Exporter Performance: Cause, Effect, or Both?," NBER Working Papers 6272, National Bureau of Economic Research, Inc.
  6. Fugazza, Marco & Robert-Nicoud, Frédéric, 2006. "Can South-South Trade Liberalisation Stimulate North-South Trade?," CEPR Discussion Papers 5699, C.E.P.R. Discussion Papers.
  7. Francesco Daveri & Olmo Silva, 2004. "Not only Nokia: what Finland tells us about new economy growth," Economic Policy, CEPR;CES;MSH, vol. 19(38), pages 117-163, 04.
  8. Micael Castanheira De Moura & Tito Boeri & Ricardo Faini & Vincenzo Galasso, 2006. "Structural reforms without prejudice," ULB Institutional Repository 2013/10017, ULB -- Universite Libre de Bruxelles.
  9. Robert E. Lipsey, 2009. "Measuring International Trade in Services," NBER Chapters, in: International Trade in Services and Intangibles in the Era of Globalization, pages 27-70 National Bureau of Economic Research, Inc.
  10. Gorodnichenko, Yuriy & Svejnar, Jan & Terrell, Katherine, 2007. "When Does FDI Have Positive Spillovers? Evidence from 17 Emerging Market Economies," IZA Discussion Papers 3079, Institute for the Study of Labor (IZA).
  11. Konings, Jozef & Vandenbussche, Hylke, 2008. "Heterogeneous responses of firms to trade protection," Journal of International Economics, Elsevier, vol. 76(2), pages 371-383, December.
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