DP4373 Anti-Trust Policy and National Growth: Some Evidence from Italy
|Author(s):||Elisabetta Allegra, Mario Forni, Michele Grillo, Lara Magnani|
|Publication Date:||May 2004|
|Keyword(s):||anti-trust, growth, international competition|
|Programme Areas:||International Macroeconomics|
|Link to this Page:||cepr.org/active/publications/discussion_papers/dp.php?dpno=4373|
Anti-trust problems affecting markets for intermediate goods or services raise the input costs of firms operating in downstream sectors, which often face tough international competition. Such firms lose market share, thus worsening the economic performance of the country. We try to document the importance of this link between competition problems and growth by analysing Italian sectoral data. We find that sectors which depend more heavily on inputs and services produced in sectors suffering from competition problems perform worse in terms of net exports, export growth and output growth.