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 language | English |
|---|---|
| Pages (from-to) | S68-S89 |
| Number of pages | 22 |
| Journal | Review of Income and Wealth |
| Volume | 63 |
| DOIs | |
| Publication status | Published - 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