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Does Competition Raise Productivity Through Improving Management Quality

Published on May 1, 2011in International Journal of Industrial Organization0.96
· DOI :10.1016/j.ijindorg.2011.02.001
John Van Reenan60
Estimated H-index: 60
(Centre for Economic Performance)
Abstract
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.
  • References (99)
  • Citations (40)
References99
Newest
#1Nicholas Bloom (NBER: National Bureau of Economic Research)H-Index: 43
#2Christos Genakos (OPA: Athens University of Economics and Business)H-Index: 9
Last.John Van Reenan (Stanford University)H-Index: 60
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#1Amil Petrin (NBER: National Bureau of Economic Research)H-Index: 17
#2Kirk White (USDA: United States Department of Agriculture)H-Index: 7
Last.Jerome P. Reiter (Duke University)H-Index: 34
view all 3 authors...
#1Thomas J. Holmes (NBER: National Bureau of Economic Research)H-Index: 29
#2James A. Schmitz (Federal Reserve Bank of Minneapolis)H-Index: 19
Cited By40
Newest
#1Sandra BroszeitH-Index: 1
#2Ursula Fritsch (IfW: Kiel Institute for the World Economy)H-Index: 2
Last.Marie-Christine LaibleH-Index: 1
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#1S. Dhondt (Katholieke Universiteit Leuven)H-Index: 5
#2Lander Vermeerbergen (Katholieke Universiteit Leuven)H-Index: 2
Last.Geert Van Hootegem (Katholieke Universiteit Leuven)H-Index: 8
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#1Brian W. Jacobs (MSU: Michigan State University)H-Index: 8
#2Richard Kraude (MSU: Michigan State University)H-Index: 1
Last.Sriram Narayanan (MSU: Michigan State University)H-Index: 14
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View next paperMeasuring and Explaining Management Practices Across Firms and Countries