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Do Product Market Regulations in Upstream Sectors Curb Productivity Growth?: Panel Data Evidence for OECD Countries

Author

Listed:
  • Renaud Bourlès

    (Ecole Centrale Marseille)

  • Gilbert Cette

    (Banque de France)

  • Jimmy Lopez

    (Banque de France)

  • Jacques Mairesse

    (CREST-ENSAE)

  • Giuseppe Nicoletti

    (OECD)

Abstract

Based on an endogenous growth model, we show that intermediate goods markets imperfections can curb incentives to improve productivity downstream. We confirm such prediction by estimating a model of multifactor productivity growth in which the effects of upstream competition vary with distance to frontier on a panel of 15 OECD countries and 20 sectors over 1985-2007. Competitive pressures are proxied with sectoral product market regulation data. We find evidence that anticompetitive upstream regulations have curbed MFP growth over the past 15 years, more strongly so for observations that are close to the productivity frontier. Les réglementations du marché des produits dans les secteurs amont limitent-elles la croissance de la productivité ? Résultats de données de panel pour les pays de l'OCDE En s?appuyant sur un modèle de croissance endogène, nous montrons dans cette étude que les imperfections de marché dans les secteurs amont abaissent les incitations à améliorer la productivité en aval. Cette conjecture est confirmée empiriquement par l?estimation d?un modèle qui différencie les effets potentiels, sur la productivité globale des facteurs (PGF), d?une concurrence insuffisante dans les secteurs amont selon la distance à la frontière technologique sectorielle. Ces estimations sont réalisées sur un panel de 15 pays de l?OCDE et 20 secteurs d?activité sur la période 1985-2007. La concurrence en amont est mesurée par des indicateurs sectoriels de régulation sur les marchés des biens. Les résultats montrent que, sur les 15 dernières années, les régulations anticompétitives dans les secteurs amont ont affaibli les gains de PGF, tout particulièrement pour les observations proches de la frontière technologique.

Suggested Citation

  • Renaud Bourlès & Gilbert Cette & Jimmy Lopez & Jacques Mairesse & Giuseppe Nicoletti, 2010. "Do Product Market Regulations in Upstream Sectors Curb Productivity Growth?: Panel Data Evidence for OECD Countries," OECD Economics Department Working Papers 791, OECD Publishing.
  • Handle: RePEc:oec:ecoaaa:791-en
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    File URL: http://dx.doi.org/10.1787/5kmbm6s9kbkf-en
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    Keywords

    catching-up; competition; compétition; croissance; growth; productivity; productivité; rattrapage; regulation; régulation;

    JEL classification:

    • C23 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Models with Panel Data; Spatio-temporal Models
    • L16 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Industrial Organization and Macroeconomics; Macroeconomic Industrial Structure
    • L5 - Industrial Organization - - Regulation and Industrial Policy
    • O43 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - Institutions and Growth
    • O57 - Economic Development, Innovation, Technological Change, and Growth - - Economywide Country Studies - - - Comparative Studies of Countries

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