Competition and Firm Productivity: Evidence from Firm-Level Data
March 1, 2010
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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.
Subject: Commodity markets, Competition, Labor productivity, Productivity, Total factor productivity
Keywords: factor share, firm level, productivity growth, WP
Pages:
34
Volume:
2010
DOI:
Issue:
067
Series:
Working Paper No. 2010/067
Stock No:
WPIEA2010067
ISBN:
9781451982114
ISSN:
1018-5941
