Pressemitteilung/Press Release

Press Release of 16 July 2014

Better Competition Policy Significantly Improves Productivity Growth

Elena (Copyright)  Laufbahn Laufbahnen Leichtathletikbahn
Copyright: Elena

Economists have long discussed the correlation between the quality of competition policies and a country's productivity growth. It is, however, very difficult to prove this connection, to determine its extent or to quantify it. Commissioned by the European Commission, a team of international researchers, led by DIW competition expert Tomaso Duso, has developed the first evaluation system to assess the effectiveness of competition policy, enabling economists to make observations regarding the impact of changes in competition policy on productivity growth. The study shows that a one-percent improvement in competition policy, based on the indicators used here, is responsible for an average increase in Total Factor Productivity (TFP) of 4.5 percent.

Links

DIW Wochenbericht 29/2014 | PDF, 1.04 MB

DIW Wochenbericht 29/2014 (E-Book) | EPUB, 2.84 MB

German Institute for Economic Research

Founded in 1925, DIW Berlin (the German Institute for Economic Research) is one of the leading economic research institutes in Germany. The Institute analyzes the economic and social aspects of topical issues, formulating and disseminating policy advice based on its research findings. DIW Berlin is part of both the national and international scientific communities, provides research infrastructure to academics all over the world, and promotes the next generation of scientists. A member of the Leibniz Association, DIW Berlin is independent and primarily publicly funded.

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