Productivity Growth: The Effect Of Market Regulations

Topics:
Organization
Tags:
Government,
Regulations,
Reserve Bank Of Australia,
Total Factor Productivity
Source:
Reserve Bank of Australia

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Overview: This paper explores the effects of product and labour market regulation on growth in Total Factor Productivity (TFP) using panel data from 1974 - 2003 for 18 OECD (Organisation for Economic Co-Operation and Development) countries. Our regressions are specified so that labour and product market regulations can affect productivity both individually and in combination. While noting that the results are sensitive to the measure of labour market regulation used, we find some support for the hypothesis that lower initial levels of regulation are associated with higher TFP growth over subsequent years, and that labour and product market deregulation have more of an effect in combination.

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Format: PDF | Size: 537KB | Date: Jun 2007 | Pages: 41

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