Regulation, Institutions, and Productivity: New Macroeconomic Evidence from OECD Countries

Balázs Égert

American Economic Review, 2016, vol. 106, issue 5, 109-13

Abstract: This paper seeks to understand the drivers of country-level multi-factor productivity (MFP) with a special emphasis on product and labour market policies and the quality of institutions. For a panel of OECD countries, we find that anticompetitive product market regulations reduce MFP levels and that higher innovation intensity and greater openness result in higher MFP. We also find that the impact of product market regulations on MFP may depend on the level of labour market regulations. Better institutions, a more business friendly environment and lower barriers to trade and investment amplify the positive impact of R&D spending on MFP. Finally, we also show that cross-country MFP variations can be explained to a considerable extent by cross-country variation in labour market regulations, barriers to trade and investment and institutions.

JEL-codes: D24 J08 L51 O43 O47 (search for similar items in EconPapers)
Date: 2016
Note: DOI: 10.1257/aer.p20161026
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Citations: View citations in EconPapers (40)

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Related works:
Working Paper: Regulation, Institutions, and Productivity: New Macroeconomic Evidence from OECD Countries (2017)
Working Paper: Regulation, Institutions and Productivity: New Macroeconomic Evidence from OECD Countries (2017)
Working Paper: Regulation, Institutions and Productivity: New Macroeconomic Evidence From OECD Countries (2017)
Working Paper: Regulation, institutions and productivity: New macroeconomic evidence from OECD countries (2017)
Working Paper: Regulation, institutions and productivity: new macroeconomic evidence from OECD countries (2016)
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