Regulation, Allocative Efficiency and Productivity in OECD Countries : Industry and Firm-Level Evidence

Resource Information

The work Regulation, Allocative Efficiency and Productivity in OECD Countries : Industry and Firm-Level Evidence represents a distinct intellectual or artistic creation found in University of Missouri-St. Louis Libraries. This resource is a combination of several types including: Work, Language Material, Books.

Label

Regulation, Allocative Efficiency and Productivity in OECD Countries : Industry and Firm-Level Evidence

Title remainder

Industry and Firm-Level Evidence

Statement of responsibility

Jens Arnold, Giuseppe Nicoletti and Stefano Scarpetta

Creator

• Arnold, Jens

Contributor

• Nicoletti, Giuseppe, 1956-
• Scarpetta, Stefano

Subject

• Economics

Language

eng

Summary

This paper relates diverging productivity performances across OECD countries over the past fifteen years to differences in the stringency of regulations in the product market. We first summarize industry-level evidence linking these diverging patterns to delays in service markets reforms in the wake of the ICT shock. The evidence we survey suggests that, especially in continental EU countries, tight regulation of services has slowed down growth in ICT-using sectors, which use intermediate service inputs intensively. Based on harmonised cross-country firm-level data, we then provide new evidence that one of the key channels through which inappropriate service regulations affect productivity growth is by hindering the allocation of resources towards the most dynamic and efficient firms. At the industry level, resources were allocated less efficiently across firms in countries where service regulations are less market-friendly. Firmlevel econometric estimates confirm that anti-competitive service regulations hamper productivity growth in ICT-using sectors, with a particularly pronounced effect on firms that are catching up to the technology frontier and that are close to international best practice. In other words, regulations hurt in particular those firms that have the potential to excel in domestic and international markets

Member of

• Working papers (Organisation for Economic Co-operation and Development. Economics Department), no. 616

Cataloging source

FR-PaOEC

Government publication

international or intergovernmental publication

Index

no index present

Literary form

non fiction

Nature of contents

dictionaries

Series statement

OECD Economics Department Working Papers,

Series volume

no.616