Do Product Market Regulations in Upstream Sectors Curb Productivity Growth? Panel Data Evidence for OECD Countries

Renaud Bourlès (1) , Gilbert Cette (1, 2) , Jimmy Lopez (3, 4) , Jacques Mairesse (5) , Giuseppe Nicoletti (6)

1 GREQAM - Groupement de Recherche en Économie Quantitative d'Aix-Marseille
2 Centre de recherche de la Banque de France
3 DGEI-DEMS - Banque de France - Direction Générale des Etudes et des relations Internationales, Direction des Etudes Microéconomique et Structurelles
4 UB - Université de Bourgogne
5 CREST - Centre de Recherche en Économie et Statistique
6 OCDE - Organisation de Coopération et de Développement Economiques = Organisation for Economic Co-operation and Development

We identify the impact of intermediate goods markets imperfections on productivity downstream. Our empirical specification is based on a model of multifactor productivity (MFP) growth in which the effects of upstream competition can vary with distance to frontier. This model is estimated on a panel of fifteen OECD countries and twenty industries over 1985 to 2007. Competitive pressures are proxied with industry product market regulation data. We find evidence that anticompetitive upstream regulations have significantly curbed MFP growth over the past fifteen years, and more strongly so for observations that are close to the productivity frontier.

Mots clés: Regulations; Productivity; Competition

Domaines: Economies et finances

Renaud Bourlès, Gilbert Cette, Jimmy Lopez, Jacques Mairesse, Giuseppe Nicoletti. Do Product Market Regulations in Upstream Sectors Curb Productivity Growth? Panel Data Evidence for OECD Countries. Review of Economics and Statistics, 2013, 95 (5), pp.1750-1768. ⟨10.1162/REST_a_00338⟩. ⟨hal-01247372⟩