Competition in the Service Sector and the Performances of Manufacturing Firms: Does Liberalization Matter?
36 Pages Posted: 18 Feb 2010
Date Written: February 2010
Services form an increasing proportion of the inputs used in manufacturing. We explore empirically whether competition in the service sector affects downstream manufacturing firms’ efficiency, via the inputs used. Using French micro-data for services, we calculate proxies for competition in services, and then use Input-Output matrices to link services to manufacturing sectors. we find that there is a positive and significant relation between the extent of competition and firms’ productivity.
Keywords: services liberalization, productivity, input-output tables, competition
JEL Classification: F10, F12, F13, L80
Suggested Citation: Suggested Citation