Upstream Product Market Regulations, ICT, R&D and Productivity

G. Cette, J. Lopez, J. Mairesse

Research output: Contribution to journalArticleAcademicpeer-review

Abstract

Our study investigates the importance of two main channels through which upstream anti-competitive sector regulations impact productivity growth: investments in R&D and in ICT, as opposed to alternative channels we cannot explicitly consider for lack of appropriate data such as improvements in skills, management and organization. We specify a three equations model: an extended production function relating total factor productivity to both R&D and ICT capital, and to upstream regulations, and two factor demand functions relating R&D and ICT capital to upstream regulations. We estimate these relations on an unbalanced panel of 15 OECD countries and 13 industries over the period 1987-2007. We find that the total impact of upstream regulations on total factor productivity is sizeable, a large part of which is transmitted through investments in R&D and ICT, mainly the former.

Original languageEnglish
Pages (from-to)S68-S89
Number of pages22
JournalReview of Income and Wealth
Volume63
DOIs
Publication statusPublished - Feb 2017

JEL classifications

  • o47 - "Measurement of Economic Growth; Aggregate Productivity; Cross-Country Output Convergence"
  • o49 - Economic Growth and Aggregate Productivity: Other

Keywords

  • growth
  • ICT
  • productivity
  • R&D
  • regulations
  • TESTS
  • ENTRY
  • HETEROGENEOUS PANELS
  • INNOVATION
  • PANEL-DATA
  • COINTEGRATION
  • MANUFACTURING FIRMS
  • COMPETITION
  • GROWTH

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