Does competition improve productivity in developing countries ? [Ressource électronique]

Using the manufacturing sector data at the three-digit level, the paper examines whether the degree of competition improves productivity in developing countries. The degree of competition is measured through markups while productivity is measured through total factor productivity (TFP) and labor productivity. All are computed by industries. Taking account of endogeneity issues and of the role of relevant control variables, the results show that in Jordan and Morocco, markup has a significant and negative impact on productivity growth. In Egypt, while markup does not seem to affect productivity growth, a decrease in the share of state-owned enterprises (SOEs) in a given industry has a significant and positive impact on productivity growth. In general, the existence of State-Owned Enterprises is an obstacle to competition. We conclude that the greater the degree of competition, the higher the productivity in the three countries. [ABSTRACT FROM AUTHOR] Copyright of Journal of Economic Policy Reform is the property of Routledge and its content may not be copied or emailed to multiple sites or posted to a listserv without the copyright holder's express written permission. However, users may print, download, or email articles for individual use. This abstract may be abridged. No warranty is given about the accuracy of the copy. Users should refer to the original published version of the material for the full abstract. (Copyright applies to all Abstracts.)