Product Market Reform and Innovation in the EU
32 Pages Posted: 16 Nov 2006
Date Written: September 2006
Abstract
European Union countries have implemented widespread reforms to product markets in order to stimulate competition, innovation and economic growth. We provide empirical evidence that the reforms carried out under the EU Single Market Programme (SMP) were associated with increased product market competition, as measured by a reduction in average profitability, and with a subsequent increase in innovation intensity and productivity growth for manufacturing sectors. In our analysis we exploit exogenous variation in the expected impact of the SMP across countries and industries to identify the effects of reforms on average profitability, and the effects of profitability on innovation and productivity growth.
Keywords: Competition, innovation, productivity growth
JEL Classification: L1, O31, O47
Suggested Citation: Suggested Citation
Do you have a job opening that you would like to promote on SSRN?
Recommended Papers
-
Regulation, Resource Reallocation and Productivity Growth
By Jens Matthias Arnold, Giuseppe Nicoletti, ...
-
Service Regulation and Growth: Evidence from OECD Countries
By Guglielmo Barone and Federico Cingano
-
Entry Barriers in Italian Retail Trade
By Eliana Viviano and Fabiano Schivardi
-
Entry Barriers in Retail Trade
By Fabiano Schivardi and Eliana Viviano
-
Education, Market Rigidities and Growth
By Philippe Aghion, Philippe Askenazy, ...
-
Competition and Firm Productivity: Evidence from Firm-Level Data
-
Impact of Structural Reforms on Productivity Growth in Industrial Countries
-
Does Anti-Competitive Regulation Matter for Productivity? Evidence from European Firms
By Jens Matthias Arnold, Giuseppe Nicoletti, ...