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Does competition raise productivity through improving management quality?

Van Reenen, John (2011) Does competition raise productivity through improving management quality? International Journal of Industrial Organization, 29 (3). pp. 306-316. ISSN 0167-7187

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Identification Number: 10.1016/j.ijindorg.2011.02.001


A classic question in industrial organization is whether competition raises productivity and if so, through what mechanism? I discuss recent empirical evidence from both large-scale databases and specific industries which suggests that tougher competition does indeed raise productivity and one of the main mechanisms is through improving management practices. To establish this, I report on new research seeking to quantify management. I relate this to theoretical perspectives on the economics of competition and management, arguing that management should be seen at least in part as a transferable technology. A range of recent econometric studies suggest that (i) competition increases management quality and (ii) improved management quality boosts productivity.

Item Type: Article
Official URL:
Additional Information: © 2010 Elsevier B.V.
Subjects: H Social Sciences > HB Economic Theory
Sets: Departments > Economics
Collections > Economists Online
Research centres and groups > Centre for Economic Performance (CEP)
Date Deposited: 05 Apr 2011 15:22
Last Modified: 20 Jun 2011 13:02

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