Competition Policy and Productivity Growth: An Empirical Assessment

Giancarlo Spagnolo, Tomaso Duso, ,, Paolo Buccirossi and Lorenzo Ciari

No 7470, CEPR Discussion Papers from C.E.P.R. Discussion Papers

Abstract: This paper empirically investigates the effectiveness of competition policy by estimating its impact on Total Factor Productivity (TFP) growth for 22 industries in 12 OECD countries over the period 1995-2005. We find a robust positive and significant effect of competition policy as measured by newly created indexes. We provide several arguments and results based on instrumental variables estimators as well as non-linearities to support the claim that the established link can be interpreted in a causal way. At a disaggregated level, the effect on TFP growth is particularly strong for specific aspects of competition policy related to its institutional set up and antitrust activities (rather than merger control). The effect is strengthened by good legal systems, suggesting complementarities between competition policy and the efficiency of law enforcement institutions.

Keywords: Antitrust; Competition policy; Deterrence; Institutions; Productivity growth (search for similar items in EconPapers)
JEL-codes: C23 K21 L4 O4 (search for similar items in EconPapers)
Date: 2009-09
New Economics Papers: this item is included in nep-cse, nep-eff and nep-fdg
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (30)

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Related works:
Journal Article: Competition Policy and Productivity Growth: An Empirical Assessment (2013)
Working Paper: Competition policy and productivity growth: An empirical assessment (2011)
Working Paper: Competition Policy and Productivity Growth: An Empirical Assessment (2009)
Working Paper: Competition policy and productivity growth: An empirical assessment (2009)
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