Competition and Firm Productivity: Evidence from Firm-Level Data
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Summary:
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.
Series:
Working Paper No. 2010/067
Subject:
Commodity markets Competition Labor productivity Productivity Total factor productivity
English
Publication Date:
March 1, 2010
ISBN/ISSN:
9781451982114/1018-5941
Stock No:
WPIEA2010067
Pages:
34
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