Regulation and Productivity Performance

Crafts, Nicholas

doi:10.1093/oxrep/grj012

Cited by 136 publications

(92 citation statements)

References 25 publications

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“…In doing so, it is 22 See also Crafts (2006) for an overview of regulation and its effect on productivity.…”

Section: B Methodological Issuesmentioning

confidence: 99%

Product Market Regulation And Macroeconomic Performance : A Review Of Cross-Country Evidence

Schiantarelli¹

2005

Policy Research Working Papers

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The main purpose of this paper is to provide a critical overview of the recent empirical contributions that use cross-country data to study the effect of product market regulation and reform on a country's macroeconomic performance. After a review of the theoretical literature and of relevant micro-econometric evidence, the paper discusses the main data and methodological issues related to empirical work on this topic. It then critically evaluates the cross-country evidence on the effect of product market regulation on markups, firm dynamics, investment, employment, innovation, productivity and output growth.A summary of what we learn from the econometric results concludes the paper.JEL Classification: D24, K20, L10, L51,O31,O40,O57

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“…In doing so, it is 22 See also Crafts (2006) for an overview of regulation and its effect on productivity.…”

Section: B Methodological Issuesmentioning

confidence: 99%

Product Market Regulation And Macroeconomic Performance : A Review Of Cross-Country Evidence

Schiantarelli¹

2005

Policy Research Working Papers

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“…The effect of financial market regulation on economic growth has been of interest from the late 1990s, for example by Rajan and Zingales (1998) and Beck et al (2005). Recent empirical studies on the effects of product market and labor regulation on economic growth, productivity, investment and innovation include , , Nicoletti and Scarpetta (2003), Aghion et al (2004), Gust and Marquez (2004), Besley and Burgess (2004), Klapper et al (2004), Botero et al (2004), Crafts (2006), Conway et al (2006), Micco and Pagés (2006), Klapper et al (2006), Viviano (2008), Poschke (2010), Bourlès et al (2010) and Buccirossi et al (2013). that countries with low-quality institutions (bottom 20 or 30 per cent) cannot reap the benefits of increase trade, with regulatory quality (e.g., labor market, market entry and tax system efficiency/tax level) playing a more important role than good governance.…”

Section: Introductionmentioning

confidence: 99%

Regulation, trade and economic growth

Silberberger

Königer

2016

Economic Systems

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Standard-Nutzungsbedingungen:Die Dokumente auf EconStor dürfen zu eigenen wissenschaftlichen Zwecken und zum Privatgebrauch gespeichert und kopiert werden.Sie dürfen die Dokumente nicht für öffentliche oder kommerzielle Zwecke vervielfältigen, öffentlich ausstellen, öffentlich zugänglich machen, vertreiben oder anderweitig nutzen.Sofern die Verfasser die Dokumente unter Open-Content-Lizenzen (insbesondere CC-Lizenzen) zur Verfügung gestellt haben sollten, gelten abweichend von diesen Nutzungsbedingungen die in der dort genannten Lizenz gewährten Nutzungsrechte. Terms of use: Documents in EconStor may AbstractThe role of regulatory quality as one of the so-called deep determinants of growth has emerged as an important issue in economic research in the past 20 years. The positive or negative growth effects of a country's regulatory framework are amplified by economic integration, which makes factors and producers more mobile and enables them to avoid burdensome regulation. Therefore, the two potential determinants to growth might be interlinked. So far there is very little empirical evidence on the impact of the regulatory framework in an integrated economy on growth. We deal with the most common problems in estimating growth equations by using internal instruments to identify a causal relationship between regulation and growth in the presence of international trade and find evidence that both regulation and trade have a significant positive influence on growth, with the effect of regulation being especially pronounced for countries that have worse regulatory quality and for middle-income countries.2

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“…As summarized by Crafts (2006), the main way in which regulations that curb competition may affect productivity growth is by reducing firms' incentives to invest, enhance efficiency and innovate. Recent empirical analyses have almost invariably found that a lack of competitive pressure is reflected in weaker investment (Alesina et al, 2005), weaker efficiency gains (Nickell et al, 1997;Nicoletti and Scarpetta, 2003) and, at least over a range, weaker innovation Griffith et al, 2006).…”

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confidence: 99%

Product market regulation and productivity convergence

Conway¹,

Rosa²,

Nicoletti³

et al. 2007

OECD Economic Studies

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In this article we investigate the effect of product market regulation on the international diffusion of productivity shocks. The results indicate that regulations that restrict competition slow the process of adjustment through which best practice production techniques diffuse across borders and new technologies are incorporated into the production process. This effect is reflected in cross-country differences in ICT investment and speeds of catch up of sectoral productivity, which are significantly influenced by differences in product market regulation. Thus, persisting cross-country differences in product market regulation can partially explain the recent observed divergence of labour productivity in OECD countries, given the emergence of new general purpose technologies over the 1990s. In the case of Canada, the results suggest that remaining regulatory barriers to competition in a few key non-manufacturing sectors may have prevented the economy from benefiting to the full extent from high productivity growth rates in the United States and other productivity leaders.ONE OF THE ECONOMIC PARADOXES of the past decade was that GDP per capita diverged across OECD countries even as policies converged in many areas, such as macroeconomic stabilization and product market regulation.The paradox was particularly striking in productivity performance across countries, the major driver of divergence in GDP per capita. This article argues that it is not only institutions and policies per se that mattered for explaining the productivity episodes from the late-1990s, but also the relationship between the

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Regulation and Productivity Performance

Cited by 136 publications

References 25 publications

Product Market Regulation And Macroeconomic Performance : A Review Of Cross-Country Evidence

Product Market Regulation And Macroeconomic Performance : A Review Of Cross-Country Evidence

Regulation, trade and economic growth

Product market regulation and productivity convergence

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