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Export performance and product market regulation

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Abstract

This paper analyses the impact of product market regulation on the propensity to export at the industry level for 13 OECD countries and 13 industries over the 1977-2007 period. Recent economic policy and academic literature insists on the negative effects of product market regulation on productivity or innovation, and hence on “competitiveness”, a term that we interpret as the ability to export. Similar to the conclusions of some contributions to a recent literature on competition and growth, the “common sense” is that product market regulation should be detrimantal to competitiveness. Testing through a two-step estimation the impact of upstream pressures of product market regulation on productivity and the effect of the latter on the propensity to export, this paper shows that upstream regulatory pressures have a significantly positive impact on productivity and thereby on the capability of an industry to attract resources and to sell its production in international markets

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  • Bruno Amable & Ivan Ledezma, 2013. "Export performance and product market regulation," Documents de travail du Centre d'Economie de la Sorbonne 13010, Université Panthéon-Sorbonne (Paris 1), Centre d'Economie de la Sorbonne.
    • Handle: RePEc:mse:cesdoc:13010
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    Cited by:

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    2. Lisi, Domenico & Malo, Miguel, 2014. "Cross-Sectors Skill Intensity, Productivity and Temporary Employment," MPRA Paper 56470, University Library of Munich, Germany.
    3. Gerard Kelly & Gianni La Cava, 2014. "International Trade Costs, Global Supply Chains and Value-added Trade in Australia," RBA Research Discussion Papers rdp2014-07, Reserve Bank of Australia.

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    More about this item

    Keywords

    Exports; product market regulation; competitiveness;
    All these keywords.

    JEL classification:

    • F14 - International Economics - - Trade - - - Empirical Studies of Trade

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