Regulations and productivity: Long run effects and nonlinear influences

Sotiris Papaioannou ()

Economic Modelling, 2017, vol. 60, issue C, 244-252

Abstract: This study examines the impact of product market regulations on Total Factor Productivity (TFP) and explores whether regulatory reforms exert a nonlinear influence on TFP growth. It also distinguishes between short run and long run effects of regulation. The obtained empirical evidence reveals that lower regulations in the long run exert a significantly positive effect on TFP of OECD countries. Short run effects of regulation are not always statistically significant. The influence of regulatory changes is higher in countries with high levels of regulation. Also, the damaging effects of regulation are more intense in countries with low technology gaps. These results hold across a wide array of econometric specifications and variables that measure regulation and TFP.

Keywords: Regulations; Total Factor Productivity; Long run effects; Nonlinear effects (search for similar items in EconPapers)
JEL-codes: O30 O47 O50 (search for similar items in EconPapers)
Date: 2017
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (4)

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Working Paper: Regulations and productivity: long run effects and non linear influences (2015)
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Persistent link: https://EconPapers.repec.org/RePEc:eee:ecmode:v:60:y:2017:i:c:p:244-252

DOI: 10.1016/j.econmod.2016.09.018

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