The Short-Term Impact of Product Market Reforms A cross-country firm-level analysis

This paper analyzes the effects of product market reforms in the short and medium term across 10 regulated industries and 18 advanced economies for the period 1998-2013 using internationally comparable firm-level data based on Orbis. It provides four key insights. First, product market reforms have...

Full description

Bibliographic Details
Main Author: Gal, Peter
Other Authors: Hijzen, Alexander
Format: eBook
Language:English
Published: Washington, D.C. International Monetary Fund 2016
Series:IMF Working Papers
Subjects:
Online Access:
Collection: International Monetary Fund - Collection details see MPG.ReNa
LEADER 03099nmm a2200577 u 4500
001 EB001825444
003 EBX01000000000000000991890
005 00000000000000.0
007 cr|||||||||||||||||||||
008 180614 ||| eng
020 |a 9781475516852 
100 1 |a Gal, Peter 
245 0 0 |a The Short-Term Impact of Product Market Reforms  |b A cross-country firm-level analysis  |c Peter Gal, Alexander Hijzen 
260 |a Washington, D.C.  |b International Monetary Fund  |c 2016 
300 |a 71 pages 
651 4 |a United States 
653 |a Credit 
653 |a Balance of trade 
653 |a Finance 
653 |a Labour; income economics 
653 |a Employment; Economic theory 
653 |a Monetary economics 
653 |a Monetary Policy, Central Banking, and the Supply of Money and Credit: General 
653 |a Commodity exchanges 
653 |a Aggregate Labor Productivity 
653 |a Unemployment 
653 |a Exports and Imports 
653 |a General Financial Markets: General (includes Measurement and Data) 
653 |a International economics 
653 |a Aggregate Human Capital 
653 |a Money 
653 |a Labor 
653 |a Financial markets 
653 |a International trade 
653 |a Wages 
653 |a Empirical Studies of Trade 
653 |a Commodity markets 
653 |a Intergenerational Income Distribution 
653 |a Money and Monetary Policy 
653 |a Trade in services 
653 |a Finance: General 
653 |a Employment 
653 |a Credit aggregates 
700 1 |a Hijzen, Alexander 
041 0 7 |a eng  |2 ISO 639-2 
989 |b IMF  |a International Monetary Fund 
490 0 |a IMF Working Papers 
028 5 0 |a 10.5089/9781475516852.001 
856 4 0 |u https://elibrary.imf.org/view/journals/001/2016/116/001.2016.issue-116-en.xml?cid=43955-com-dsp-marc  |x Verlag  |3 Volltext 
082 0 |a 330 
520 |a This paper analyzes the effects of product market reforms in the short and medium term across 10 regulated industries and 18 advanced economies for the period 1998-2013 using internationally comparable firm-level data based on Orbis. It provides four key insights. First, product market reforms have positive effects on capital, output and employment and their effects increase over time. After two years, they raise capital by 4%, output by 3% and employment by 1.5%. Second, differences in production technology and the nature of product market regulations across sectors generate important differences in the mechanisms through which reforms operate. In network industries, reforms tend to benefit small firms, while the opposite is observed in retail trade. Product market reforms also promote firm entry, particularly those that reduce entry barriers. Third, credit constraints can play an important role in weakening the positive impact of product market reform on investment. Fourth, product market reforms also tend to have positive effects on firms in downstream sectors—both at home and abroad—that make intensive use of intermediate inputs from deregulated sectors