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• W1896247590 abstract "This paper aims at analyzing, from an empirical point of view, the relationship between productmarket competition and economic growth, using the data on multi-factor productivity for a panel of 20OECD countries over a period 1995-2005, and considering the role of the distance from the technologicalfrontier in the growth process.Section A examines the impact of economic freedom and of the distance to frontier on the level andon the growth rate of multi-factor productivity. The analysis distinguishes between the indicators of businessfreedom and trade freedom, as proxies for the competitive pressures coming from domestic market and fromforeign market. Then, trade liberalizations are more beneficial for the countries far from the frontier, becausethey can exploit the opportunities given by international trade also in order to adopt the existing technologiesdeveloped by the advanced economies. On the other hand, business liberalizations are more advantageous forthe countries close to the frontier, because the elimination of regulatory barriers increases the possibility ofentry in the market and then rises the potential competition to the incumbent firms.Section B studies the effect of product market regulation, employment protection legislation and ofthe distance to frontier on the level and on the growth rate of multi-factor productivity. Product marketliberalization as well as labour market deregulation determine an increase of total factor productivity:moreover, the interaction of market rigidities with the distance to the frontier mostly displays an innovationenhancingeffect, since the positive effect of market liberalizations on TFP is higher for the countries close tothe frontier, where the existing technology level would reinforce the incentive for innovation." @default.
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• W1896247590 date "2009-12-01" @default.
• W1896247590 modified "2023-09-27" @default.
• W1896247590 title "Competition and Economic Growth: an Empirical Analysis for a Panel of 20 OECD Countries" @default.
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