Dutch retail trade on the rise? Relation between competition, innovation and productivity

Harold Creusen, Björn Vroomen, Henry van der Wiel and Fred Kuypers ()
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Fred Kuypers: CPB Netherlands Bureau for Economic Policy Analysis

No 137, CPB Document from CPB Netherlands Bureau for Economic Policy Analysis

Abstract: The Dutch retail trade demonstrated a relatively meagre performance in terms of productivity (growth) during the 1990s, especially seen from an international perspective. This study analyses the productivity performance of the Dutch retail trade in more detail, and focuses on competition and innovation as two main drivers of productivity growth.More precisely, it takes the mutual relationship between competition, innovation and productivity explicitly into account. Between 1993 and 2002 changes in competition varied substantially within the retail trade. However, on average competition slightly declined. Furthermore, only a few firms in the Dutch retail trade innovate. Regression analysis reveals that both competition and innovation enhance productivity growth directly. Further, fiercer competition induces more innovation, and consequently also raises productivity indirectly via innovation.

JEL-codes: D24 L1 L5 L81 O31 (search for similar items in EconPapers)
Date: 2006-12
New Economics Papers: this item is included in nep-eff, nep-ino and nep-int
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (12)

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Persistent link: https://EconPapers.repec.org/RePEc:cpb:docmnt:137

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