Product market regulation in the OECD area has generally become less restrictive of competition over recent years. This has lead to a degree of convergence in regulatory policies, but nonetheless, the productivity performance of OECD countries has become increasingly disparate. Indeed, according...

This paper investigates the effect of product market regulations on the international diffusion of productivity shocks. The empirical results indicate that restrictive product market regulations slow the process of adjustment through which best practice production techniques diffuse across...