Service Deregulation, Competition and the Performance of French and Italian Firms
Government of the Italian Republic (Italy), Ministry of Economy and Finance, Department of the Treasury Working Paper No. 3
30 Pages Posted: 4 Apr 2013
Date Written: March 29, 2013
We use firm-level data for France and Italy to explore the impact of service regulation reform implemented in the two countries on the mark-up and eventually on the performance of firms between the second half of the 1990s and 2007. We find that the relation between entry barriers and productivity is negative and is crucially intermediated through the firm's mark up. If both countries adopted OECD's best practices in terms of entry barriers, their TFP level would increase by 3% for Italy and 3.5% for France.
Keywords: regulation, services, performance, TFP
JEL Classification: D24, K20, L51, O40, O57
Suggested Citation: Suggested Citation