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 …

explain them. We then describe a theoretical framework of endogenous markups, innovation, and competition that can potentially …

products’ attractiveness and endogenous competition. The model is motivated by two novel stylized facts using Danish … feature the toughest competition. Depending on the strength of competition, two sorting patterns are possible: one in which … quantifying our model, we find that product-specific differences in attractiveness and competition explain a quarter of the …