Competition and Firm Productivity; Evidence From Firm-Level Data

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.

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Year of publication:	2010-03-01
Authors:	Schiffbauer, Marc ; Ospina, Sandra
Institutions:	International Monetary Fund (IMF)
Subject:	Productivity \| Eastern Europe \| Economic models \| Economic reforms \| Industrial sector \| Markets \| Production growth \| competition \| survey \| correlation \| instrumental variables \| heteroscedasticity \| imperfect competition \| surveys \| statistics \| market competition \| product market competition \| estimation period \| equation \| competitive pressure \| descriptive statistics \| computation \| instrumental variable \| degree of competition \| sampling \| confidence intervals \| measurement errors \| dummy variable \| competition from imports \| perfect competition \| sample size \| sample sizes \| missing data \| random samples \| regulatory authorities \| difference equation \| cointegration \| predictions \| import competition \| standard errors \| explanatory power \| external competition \| domestic competition \| empirical model \| confidence interval \| competition between firms \| polynomial \| dummy variables \| skewness \| effect of regulation \| monopoly \| samples \| regression equation \| markov chain

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Extent:	application/pdf
Series:	IMF Working Papers.
Type of publication:	Book / Working Paper
Language:	English
Notes:	The text is part of a series IMF Working Papers Number 10/67 3 pages long
Source:	RePEc - Research Papers in Economics

Persistent link: https://www.econbiz.de/10008470387