The impact of competition intensity on labour productivity growth in Canada / by Hassan Faryaar, Carlos Rosell and Nina Stegnjaic. : CS11-0019/490E-PDF

"This paper extends the existing literature by examining potential non-linear effects of competition on productivity growth and by assessing whether competitive pressures affect productivity leaders and laggards differently. Its results indicate that stronger competition is generally associated with faster productivity growth across most measures, though the relationship appears non-linear when competition is proxied by the Herfindahl–Hirschman Index (HHI). Moreover, the paper finds that productivity growth among productivity leaders is significantly weaker in less competitive markets, highlighting the importance of market contestability for sustaining productivity growth"--Abstract, page 5.

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