Competition and Productivity Growth in South Africa

28 Pages Posted: 17 Sep 2008

See all articles by Philippe Aghion

Philippe Aghion

College de France and London School of Economics and Political Science, Fellow; Centre for Economic Policy Research (CEPR); National Bureau of Economic Research (NBER)

Matías Braun

Universidad Adolfo Ibanez

Johannes W. Fedderke

University of the Witwatersrand - School of Economics and Business Sciences; University of Cape Town

Abstract

This article shows that mark-ups are significantly higher in South African manufacturing industries than they are in corresponding industries worldwide. We test for the consequences of this low-level of product market competition on productivity growth. The results of the paper are that high mark-ups have a large negative impact on productivity growth in South African manufacturing industry. Our results are robust to three different data sources, two alternative measures of productivity growth, and three distinct measures of the mark-up. Controlling for potential endogeneity of regressors does not eliminate the findings.

Suggested Citation

Aghion, Philippe and Braun, Matias and Fedderke, Johannes, Competition and Productivity Growth in South Africa. Economics of Transition, Vol. 16, Issue 4, pp. 741-768, October 2008. Available at SSRN: https://ssrn.com/abstract=1269693 or http://dx.doi.org/10.1111/j.1468-0351.2008.00336.x

Philippe Aghion (Contact Author)

College de France and London School of Economics and Political Science, Fellow ( email )

London
United Kingdom

Centre for Economic Policy Research (CEPR)

London
United Kingdom

National Bureau of Economic Research (NBER)

1050 Massachusetts Avenue
Cambridge, MA 02138
United States

Matias Braun

Universidad Adolfo Ibanez ( email )

Diagonal Las Torres 2640 Peñaleón
Presidente Errázuriz 3485 Las Condes
Santiago, 794-1169
Chile

HOME PAGE: http://www.matiasbraun.com

Johannes Fedderke

University of the Witwatersrand - School of Economics and Business Sciences ( email )

Private Bag 3
WITS 2050
South Africa
+27 11 717-8106 (Phone)

University of Cape Town ( email )

Private Bag X3
Rondebosch, Western Cape 7701
South Africa

Register to save articles to
your library

Register

Paper statistics

Downloads
3
Abstract Views
884
PlumX Metrics