Competition and Firm Productivity: Evidence from Firm-Level Data

Marc Schiffbauer and Sandra Ospina

No 2010/067, IMF Working Papers from International Monetary Fund

Abstract: 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.

Keywords: WP; factor share; productivity growth; firm level (search for similar items in EconPapers)
Pages: 34
Date: 2010-03-01
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Citations: View citations in EconPapers (36)

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