Antitrust & Competition Policy Blog

Editor: D. Daniel Sokol
University of Florida
Levin College of Law

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Thursday, April 8, 2010

Competition and Firm Productivity: Evidence from Firm-Level Data

Posted by D. Daniel Sokol

Sandra Ospina (IMF) and Marc Schiffbauer (World Bank) explain Competition and Firm Productivity: Evidence from Firm-Level Data.

ABSTRACT: This paper presents empirical evidence on the impact of competition on firm productivity. Using firm-level observations from the World Bank Enterprise Survey database, we find a positive and robust causal relationship between our proxies for competition and our measures of productivity. We also find that countries that implemented product-market reforms had a more pronounced increase in competition, and correspondingly, in productivity: the contribution to productivity growth due to competition spurred by product-market reforms is around 12-15 percent.

http://lawprofessors.typepad.com/antitrustprof_blog/2010/04/competition-and-firm-productivity-evidence-from-firmlevel-data-.html

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