IDEAS home Printed from https://ideas.repec.org/
MyIDEAS: Log in (now much improved!) to save this paper

A Minimum of Rivalry : Evidence from Transition Economies on the Importance of Competition for Innovation and Growth

Listed author(s):
  • Carlin, Wendy
  • Schaffer, Mark
  • Seabright, Paul

This paper examines the importance of competition in the growth and development of firms. We make use of the large-scale natural experiment of the shift from an economic system without competition to a market economy to shed light on the factors that influence innovation by firms and their subsequent growth. Using a dataset from a survey of nearly 4,000 firms in 24 transition countries, we find evidence of the importance of a minimum of rivalry in both innovation and growth: the presence of at least a few competitors is effective both directly and through improving the efficiency with which the rents from market power in product markets are utilised to undertake innovation.

(This abstract was borrowed from another version of this item.)

If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.

File URL: http://idei.fr/sites/default/files/medias/doc/wp/2004/minimum_rivalry.pdf
File Function: Full text
Download Restriction: no

Paper provided by Institut d'Économie Industrielle (IDEI), Toulouse in its series IDEI Working Papers with number 272.

as
in new window

Length:
Date of creation: Mar 2004
Publication status: Published in Contributions to Economic Analysis and Policy, vol. 3, n°1, 2004, p. 1-42.
Handle: RePEc:ide:wpaper:1782
Contact details of provider: Postal:
Manufacture des Tabacs, Aile Jean-Jacques Laffont, 21 Allée de Brienne, 31000 TOULOUSE

Phone: +33 (0)5 61 12 85 89
Fax: + 33 (0)5 61 12 86 37
Web page: http://www.idei.fr/
Email:


More information through EDIRC

References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:

as
in new window


  1. James R. Tybout, 2000. "Manufacturing Firms in Developing Countries: How Well Do They Do, and Why?," Journal of Economic Literature, American Economic Association, vol. 38(1), pages 11-44, March.
  2. Christopher F Baum & Mark E. Schaffer & Steven Stillman, 2003. "Instrumental variables and GMM: Estimation and testing," Stata Journal, StataCorp LP, vol. 3(1), pages 1-31, March.
  3. Philippe Aghion & Nick Bloom & Richard Blundell & Rachel Griffith & Peter Howitt, 2005. "Competition and Innovation: an Inverted-U Relationship," The Quarterly Journal of Economics, Oxford University Press, vol. 120(2), pages 701-728.
  4. -, 2000. "Evolución de la economía brasileña," Informe Estadístico – Oficina de la CEPAL en Brasilia 27987, Naciones Unidas Comisión Económica para América Latina y el Caribe (CEPAL).
  5. repec:adr:anecst:y:1994:i:34 is not listed on IDEAS
  6. Simeon Djankov & Peter Murrell, 2002. "Enterprise Restructuring in Transition: A Quantitative Survey," Journal of Economic Literature, American Economic Association, vol. 40(3), pages 739-792, September.
  7. Jerry Hausman & Gregory Leonard & J. Douglas Zona, 1994. "Competitive Analysis with Differentiated Products," Annals of Economics and Statistics, GENES, issue 34, pages 143-157.
  8. Nickell, Stephen J, 1996. "Competition and Corporate Performance," Journal of Political Economy, University of Chicago Press, vol. 104(4), pages 724-746, August.
  9. repec:adr:anecst:y:1994:i:34:p:06 is not listed on IDEAS
  10. N/A, 2000. "The world economy," National Institute Economic Review, National Institute of Economic and Social Research, vol. 174(1), pages 3-3, October.
  11. Simon Johnson & John McMillan & Christopher Woodruff, 2002. "Property Rights and Finance," American Economic Review, American Economic Association, vol. 92(5), pages 1335-1356, December.
  12. Anonymous, 2000. "Microeconomic Reform and the Environment," Conference/Workshop Proceedings 31908, Productivity Commission.
  13. anonymous, 2000. "Western economic developments," Western economic developments, Federal Reserve Bank of San Francisco, issue Jun.
  14. Philippe Aghion & Mathias Dewatripont & Patrick Rey, 1999. "Competition, Financial Discipline and Growth," Review of Economic Studies, Oxford University Press, vol. 66(4), pages 825-852.
  15. -, 2000. "Evolución de la economía brasileña," Informe Estadístico – Oficina de la CEPAL en Brasilia 27992, Naciones Unidas Comisión Económica para América Latina y el Caribe (CEPAL).
  16. -, 2000. "Evolución de la economía brasileña," Informe Estadístico – Oficina de la CEPAL en Brasilia 27990, Naciones Unidas Comisión Económica para América Latina y el Caribe (CEPAL).
  17. Philippe Aghion & Christopher Harris & Peter Howitt & John Vickers, 2001. "Competition, Imitation and Growth with Step-by-Step Innovation," Review of Economic Studies, Oxford University Press, vol. 68(3), pages 467-492.
  18. N/A, 2000. "At a Glance ... The UK economy," National Institute Economic Review, National Institute of Economic and Social Research, vol. 173(1), pages 2-2, July.
  19. anonymous, 2000. "Western economic developments," Western economic developments, Federal Reserve Bank of San Francisco, issue Mar.
  20. Anonymous, 2000. "Agricultural Economics Volumes 1-22, 1986-2000," Agricultural Economics of Agricultural Economists, International Association of Agricultural Economists, vol. 23(2), August.
  21. -, 2000. "Global economic developments, 1999," Sede Subregional de la CEPAL para el Caribe (Estudios e Investigaciones) 27471, Naciones Unidas Comisión Económica para América Latina y el Caribe (CEPAL).
  22. Bresnahan, Timothy F & Reiss, Peter C, 1991. "Entry and Competition in Concentrated Markets," Journal of Political Economy, University of Chicago Press, vol. 99(5), pages 977-1009, October.
  23. ., 2000. "Inflation and economic performance," Chapters, in: Macroeconomic Instability and Coordination, chapter 8 Edward Elgar Publishing.
  24. -, 2000. "Evolución de la economía brasileña," Informe Estadístico – Oficina de la CEPAL en Brasilia 27988, Naciones Unidas Comisión Económica para América Latina y el Caribe (CEPAL).
  25. anonymous, 2000. "Western economic developments," Western economic developments, Federal Reserve Bank of San Francisco, issue Sep.
  26. Cohen, Wesley M. & Levin, Richard C., 1989. "Empirical studies of innovation and market structure," Handbook of Industrial Organization, in: R. Schmalensee & R. Willig (ed.), Handbook of Industrial Organization, edition 1, volume 2, chapter 18, pages 1059-1107 Elsevier.
  27. -, 2000. "Evolución de la economía brasileña," Informe Estadístico – Oficina de la CEPAL en Brasilia 27984, Naciones Unidas Comisión Económica para América Latina y el Caribe (CEPAL).
  28. anonymous, 2000. "Western economic developments," Western economic developments, Federal Reserve Bank of San Francisco, issue Nov.
  29. anonymous, 2000. "Western economic developments," Western economic developments, Federal Reserve Bank of San Francisco, issue Feb.
  30. Fuller, Wayne A, 1977. "Some Properties of a Modification of the Limited Information Estimator," Econometrica, Econometric Society, vol. 45(4), pages 939-953, May.
  31. Carlin, Wendy & Fries, Steven & Schaffer, Mark E & Seabright, Paul, 2001. "Competition and Enterprise Performance in Transition Economies: Evidence from a Cross-country Survey," CEPR Discussion Papers 2840, C.E.P.R. Discussion Papers.
  32. anonymous, 2000. "Twelfth District economic update," Western economic developments, Federal Reserve Bank of San Francisco, issue Dec, pages 1-5.
  33. N/A, 2000. "Section I. Recent economic developments," National Institute Economic Review, National Institute of Economic and Social Research, vol. 174(1), pages 30-37, October.
  34. N/A, 2000. "The world economy," National Institute Economic Review, National Institute of Economic and Social Research, vol. 172(1), pages 3-3, April.
  35. Wendy Carlin & Jonathan Haskel & Paul Seabright, 2001. "Understanding ‘The Essential Fact about Capitalism’: Markets, Competition and Creative Destruction," National Institute Economic Review, National Institute of Economic and Social Research, vol. 175(1), pages 67-84, January.
  36. anonymous, 2000. "Reviewing economic development needs," Banking and Community Perspectives, Federal Reserve Bank of Dallas, issue 2, pages 6-7.
  37. -, 2000. "Economic survey of United States, 1999," Oficina de la CEPAL en Washington (Estudios e Investigaciones) 28796, Naciones Unidas Comisión Económica para América Latina y el Caribe (CEPAL).
  38. Ng, Charles K & Seabright, Paul, 2001. "Competition, Privatisation and Productive Efficiency: Evidence from the Airline Industry," Economic Journal, Royal Economic Society, vol. 111(473), pages 591-619, July.
  39. Marjolein C.J. Caniëls, 2000. "Knowledge Spillovers and Economic Growth," Books, Edward Elgar Publishing, number 1936.
  40. ., 2000. "Ideology and analysis in macroeconomics," Chapters, in: Macroeconomic Instability and Coordination, chapter 18 Edward Elgar Publishing.
  41. -, 2000. "Evolución de la economía brasileña," Informe Estadístico – Oficina de la CEPAL en Brasilia 27991, Naciones Unidas Comisión Económica para América Latina y el Caribe (CEPAL).
  42. N/A, 2000. "The world economy," National Institute Economic Review, National Institute of Economic and Social Research, vol. 173(1), pages 3-3, July.
  43. Hall, Robert E, 1988. "The Relation between Price and Marginal Cost in U.S. Industry," Journal of Political Economy, University of Chicago Press, vol. 96(5), pages 921-947, October.
  44. -, 2000. "Meeting held on engendering macroeconomic policy," Sede Subregional de la CEPAL para el Caribe (Estudios e Investigaciones) 2, Naciones Unidas Comisión Económica para América Latina y el Caribe (CEPAL).
  45. anonymous, 2000. "Strengthening the emerging market economies," Conference Series ; [Proceedings], Federal Reserve Bank of Boston, vol. 44(Jun), pages 228-231.
  46. -, 2000. "Economic survey of Canada, 1999," Oficina de la CEPAL en Washington (Estudios e Investigaciones) 28797, Naciones Unidas Comisión Económica para América Latina y el Caribe (CEPAL).
  47. anonymous, 2000. "Western economic developments," Western economic developments, Federal Reserve Bank of San Francisco, issue May.
  48. -, 2000. "Evolución de la economía brasileña," Informe Estadístico – Oficina de la CEPAL en Brasilia 27985, Naciones Unidas Comisión Económica para América Latina y el Caribe (CEPAL).
  49. N/A, 2000. "The World Economy," National Institute Economic Review, National Institute of Economic and Social Research, vol. 173(1), pages 43-65, July.
  50. -, 2000. "Evolución de la economía brasileña," Informe Estadístico – Oficina de la CEPAL en Brasilia 27986, Naciones Unidas Comisión Económica para América Latina y el Caribe (CEPAL).
  51. R. Schmalensee & R. Willig (ed.), 1989. "Handbook of Industrial Organization," Handbook of Industrial Organization, Elsevier, edition 1, volume 2, number 2.
  52. -, 2000. "Evolución de la economía brasileña," Informe Estadístico – Oficina de la CEPAL en Brasilia 27983, Naciones Unidas Comisión Económica para América Latina y el Caribe (CEPAL).
  53. Grosfeld, Irena & Tressel, Thierry, 2001. "Competition, Corporate Governance: Substitutes or Complements? Evidence from the Warsaw Stock Exchange," CEPR Discussion Papers 2888, C.E.P.R. Discussion Papers.
  54. Richard Blundell & Rachel Griffith & John van Reenen, 1999. "Market Share, Market Value and Innovation in a Panel of British Manufacturing Firms," Review of Economic Studies, Oxford University Press, vol. 66(3), pages 529-554.
  55. repec:ecr:col114:28022 is not listed on IDEAS
  56. anonymous, 2000. "Western economic developments," Western economic developments, Federal Reserve Bank of San Francisco, issue Aug.
  57. R. Schmalensee & R. Willig (ed.), 1989. "Handbook of Industrial Organization," Handbook of Industrial Organization, Elsevier, edition 1, volume 1, number 1.
  58. Aghion, Philippe & Harris, Christopher & Vickers, John, 1997. "Competition and growth with step-by-step innovation: An example," European Economic Review, Elsevier, vol. 41(3-5), pages 771-782, April.
Full references (including those not matched with items on IDEAS)

This item is not listed on Wikipedia, on a reading list or among the top items on IDEAS.

When requesting a correction, please mention this item's handle: RePEc:ide:wpaper:1782. 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: ()

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 references are entirely missing, you can add them using this form.

If the full references list an item that is present in RePEc, but the system did not link 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 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.

This information is provided to you by IDEAS at the Research Division of the Federal Reserve Bank of St. Louis using RePEc data.