Schiantarelli, Fabio2012-06-202012-06-202005-11https://hdl.handle.net/10986/8567The main purpose of this paper is to provide a critical overview of the recent empirical contributions that use cross-country data to study the effects of product market regulation and reform on a country's macroeconomic performance. After a brief review of the theoretical literature and of relevant micro-econometric evidence, the paper discusses the main data and methodological issues related to empirical work on this topic. It then critically evaluates the cross-country evidence on the effects of product market regulation on mark-ups, firm dynamics, investment, employment, innovation, productivity, and output growth. The paper concludes with a summary of lessons learned from the econometric results.CC BY 3.0 IGOADJUSTMENT COSTSADVERSE EFFECTSAGENCY PROBLEMSAGGREGATE OUTPUTAGGREGATE PERFORMANCEAGGREGATE PRODUCTIVITY GROWTHAVERAGE PRODUCTIVITYAVERAGE PRODUCTIVITY GROWTHBANKRUPTCYBARGAINING POWERBARRIERS TO ENTRYCAPITAL ACCUMULATIONCAPITAL COSTSCOMPETITIVE ENVIRONMENTCOMPETITIVE MARKETSCOMPETITIVE PRESSURECONSUMERSCOUNTRY LEVELCREATIVE DESTRUCTIONCROSS-COUNTRY DATADATA SETDATA SETSDEMAND ELASTICITYDEPENDENT VARIABLEDEREGULATIONDEVELOPED COUNTRIESDEVELOPING COUNTRIESDOWNWARD BIASDYNAMIC PANELECONOMIC ACTIVITYECONOMIC OUTCOMESECONOMIC OUTLOOKELASTICITYEMPIRICAL EVIDENCEEMPIRICAL LITERATUREEMPIRICAL RESEARCHEMPIRICAL RESULTSEMPIRICAL WORKENDOGENOUS GROWTHENDOGENOUS GROWTH MODELENTRY BARRIERSENTRY COSTENTRY COSTSENTRY RATEEQUILIBRIUM PRICESEXPLANATORY POWEREXPLANATORY VARIABLEFACTOR DEMANDFACTOR MARKETSFINANCIAL SECTORFIRM DEMOGRAPHICFIRM DYNAMICSFIRM LEVELFIRM SIZEFIRM TURNOVERFOREIGN COMPETITIONGDPGDP PER CAPITAGROWTH MODELSGROWTH RATEGROWTH RATESHIGH UNEMPLOYMENTIMPORT BARRIERSINCOMEINCREASING RETURNSINCREASING SHAREINDIVIDUAL COUNTRIESINDUSTRIAL ECONOMIESINEFFICIENCYINFLATIONLABOR DEMANDLABOR MARKETLABOR MARKET REFORMLABOR MARKET REGULATIONLABOR MARKET REGULATIONSLABOR MARKETSLABOR PRODUCTIVITYLONG-RUN EFFECTSMACROECONOMIC PERFORMANCEMANAGERIAL SLACKMARGINAL COSTSMARKETMARKET POWERMARKET SHAREMARKET STRUCTUREMEASUREMENT ERRORMINIMUM LEVELMONOPOLY RENTSNATURAL MONOPOLIESNEGATIVE EFFECTNEGATIVE IMPACTPATENTSPOLICY IMPLICATIONSPOLICY RESEARCHPOOR COUNTRIESPOOR GROWTHPOSITIVE EFFECTPOSITIVE RELATIONSHIPPRICE CONTROLSPRICE ELASTICITYPRICE ELASTICITY OF DEMANDPRIVATIZATIONPROCESS INNOVATIONSPRODUCT MARKETPRODUCT MARKET REFORMPRODUCT MARKET REFORMSPRODUCT MARKET REGULATIONPRODUCTION COSTSPRODUCTION FUNCTIONPRODUCTIVE EFFICIENCYPRODUCTIVE FIRMSPRODUCTIVITYPRODUCTIVITY GAINSPRODUCTIVITY GROWTHPRODUCTIVITY IMPROVEMENTPRODUCTIVITY LEVELSPUBLIC ENTERPRISESREAL WAGEREAL WAGESREFORMSREGULATORY CHANGESREGULATORY DATAREGULATORY ENVIRONMENTREGULATORY FRAMEWORKREGULATORY REFORMSRELATIVE IMPORTANCERESOURCE ALLOCATIONRETAILRETAIL TRADESCALE EFFECTSCALE EFFECTSSERVICE SECTORSIGNIFICANT EFFECTTARIFF BARRIERSTOTAL FACTOR PRODUCTIVITYTOTAL FACTOR PRODUCTIVITY GROWTHTOTAL PRODUCTIVITY GROWTHTRADE BARRIERSTRADE LIBERALIZATIONTRANSITION ECONOMIESTRANSPORT SECTORUNEMPLOYMENTUTILITIESVALUE ADDEDVERTICAL INTEGRATIONVOLATILITYWAGESWORKERSWorld Bank10.1596/1813-9450-3770