Competition and Firm Productivity: Evidence from Firm-Level Data

Author/Editor:

Marc Schiffbauer ; Sandra Ospina

Publication Date:

March 1, 2010

Electronic Access:

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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:

English

Publication Date:

March 1, 2010

ISBN/ISSN:

9781451982114/1018-5941

Stock No:

WPIEA2010067

Pages:

34

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