Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/74898
Authors: 
Forlani, Emanuele
Year of Publication: 
2012
Series/Report no.: 
LICOS Discussion Paper 311
Abstract: 
In developed economies, services firm an increasing proportion of inputs employed by manufacturing firms. While downstream firms act in a very competitive environment, services often operate in protected or highly regulated markets. In this paper, I empirically investigate whether the degree of competition in services affects the efficiency of manufacturing firms through services production inputs. By using both firm and sector level data for France, through input-output analysis I show that variations in the upstream competition, especially in network industries, affect the average productivity level in manufacturing industry: an increase in average markups is associated with a reduction in manufacturing productivity. The findings differ according to firms size and initial efficiency level: in the short run less efficient and small firms are relatively mostly hfirmed by an uncompetitive service sector.
Subjects: 
Service sector
competition
productivity
I-O tables
JEL: 
D24
L11
L51
L80
Document Type: 
Working Paper

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