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Competition, Selection, and Productivity Growth in the Chilean Manufacturing Industry

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  • Roberto Álvarez
  • Aldo González

Abstract

Recent evidence for several countries shows a decline in TFP growth. However, there is not much evidence for developing countries and much less regarding the impact of competition in product markets. In this paper, we analyze the impact of competition on selection and productivity growth in Chile. Our results indicate that competition has a positive effect on TFP growth and the probability of exit for lagging firms. Our results are robust to alternative methodologies for calculating TFP and to the inclusion of other variables that may affect firms’ TFP growth.

Suggested Citation

  • Roberto Álvarez & Aldo González, 2017. "Competition, Selection, and Productivity Growth in the Chilean Manufacturing Industry," Working Papers wp453, University of Chile, Department of Economics.
  • Handle: RePEc:udc:wpaper:wp453
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    References listed on IDEAS

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    Cited by:

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    2. Benavente, José Miguel & Zuñiga, Pluvia, 2022. "How Does Market Competition Affect Firm Innovation Incentives in Emerging Countries? Evidence from Chile and Colombia," IDB Publications (Working Papers) 12198, Inter-American Development Bank.

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    More about this item

    JEL classification:

    • D22 - Microeconomics - - Production and Organizations - - - Firm Behavior: Empirical Analysis
    • L25 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Firm Performance

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