The Impact of Product Market Reforms on Firm Productivity in Italy

Author/Editor:

Sergi Lanau ; Petia Topalova

Publication Date:

June 15, 2016

Electronic Access:

Free Download. Use the free Adobe Acrobat Reader to view this PDF file

Disclaimer: This Working Paper should not be reported as representing the views of the IMF.The views expressed in this Working Paper are those of the author(s) and do not necessarily represent those of the IMF or IMF policy. Working Papers describe research in progress by the author(s) and are published to elicit comments and to further debate

Summary:

This paper examines the role of removing obstacles to competition in product markets in raising growth and productivity. Using firm-level data from Italy during 2003–13 and OECD measures of product market regulation, we estimate the effect of deregulation in network sectors on value added and productivity of firms in these sectors, as well as firms using these intermediates in their production processes. We find evidence of a significant positive impact. These effects are more pronounced in Italian provinces with more efficient public administration, underscoring the complementarities of advancing public administration and product market reforms simultaneously.

Series:

Working Paper No. 2016/119

Subject:

Commodity markets Competition Expenditure Financial markets Production Productivity Public expenditure review Total factor productivity

English

Publication Date:

June 15, 2016

ISBN/ISSN:

9781475524925/1018-5941

Stock No:

WPIEA2016119

Pages:

25

Please address any questions about this title to publications@imf.org