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The impact on growth of easing regulations in upstream sectors

Abstract : We identify the impact of intermediate goods markets imperfections on productivity downstream. Our empirical specification is based on a model of multifactor productivity growth in which the effects of upstream competition can vary with distance to frontier. This model is estimated on a panel of 15 OECD countries and 20 industries over 1985-2007. 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 15 years, and more strongly so for observations that are close to the productivity frontier.
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https://hal.archives-ouvertes.fr/hal-01247389
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Renaud Bourlès, Gilbert Cette, Jimmy Lopez, Jacques Mairesse, Giuseppe Nicoletti. The impact on growth of easing regulations in upstream sectors. [Research Report] CESifo. 2010. ⟨hal-01247389⟩

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