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

G. Cette; J. Lopez; J. Mairesse

doi:10.1111/roiw.12252

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

G. Cette^*, J. Lopez, J. Mairesse

^*Corresponding author for this work

Research output: Contribution to journal › Article › Academic › peer-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 language	English
Pages (from-to)	S68-S89
Number of pages	22
Journal	Review of Income and Wealth
Volume	63
DOIs	https://doi.org/10.1111/roiw.12252
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

Access to Document

10.1111/roiw.12252

Cite this

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title = "Upstream Product Market Regulations, ICT, R&D and Productivity",

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.",

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

author = "G. Cette and J. Lopez and J. Mairesse",

note = "data source: no data used Export Date: 7 September 2017 Correspondence Address: Cette, G.; Banque de France and Aix-Marseille School of Economics, CNRS & EHESSFrance; email: gilbert.cette@banque-france.fr",

year = "2017",

month = feb,

doi = "10.1111/roiw.12252",

language = "English",

volume = "63",

pages = "S68--S89",

journal = "Review of Income and Wealth",

issn = "0034-6586",

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TY - JOUR

T1 - Upstream Product Market Regulations, ICT, R&D and Productivity

AU - Cette, G.

AU - Lopez, J.

AU - Mairesse, J.

N1 - data source: no data used Export Date: 7 September 2017 Correspondence Address: Cette, G.; Banque de France and Aix-Marseille School of Economics, CNRS & EHESSFrance; email: gilbert.cette@banque-france.fr

PY - 2017/2

Y1 - 2017/2

N2 - 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.

AB - 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.

KW - growth

KW - ICT

KW - productivity

KW - R&D

KW - regulations

KW - TESTS

KW - ENTRY

KW - HETEROGENEOUS PANELS

KW - INNOVATION

KW - PANEL-DATA

KW - COINTEGRATION

KW - MANUFACTURING FIRMS

KW - COMPETITION

KW - GROWTH

U2 - 10.1111/roiw.12252

DO - 10.1111/roiw.12252

M3 - Article

SN - 0034-6586

VL - 63

SP - S68-S89

JO - Review of Income and Wealth

JF - Review of Income and Wealth

ER -