Competition and productivity growth in South Africa

Philippe Aghion*, Matias Braun, Johannes Fedderke

*Corresponding author for this work

Research output: Contribution to journalArticlepeer-review

70 Scopus citations


This article shows that mark-ups are significantly higher in South African manufacturing industries than they are in corresponding industries worldwide. We test for the consequences of this low-level of product market competition on productivity growth. The results of the paper are that high mark-ups have a large negative impact on productivity growth in South African manufacturing industry. Our results are robust to three different data sources, two alternative measures of productivity growth, and three distinct measures of the mark-up. Controlling for potential endogeneity of regressors does not eliminate the findings.

Original languageEnglish
Pages (from-to)741-768
Number of pages28
JournalEconomics of Transition
Issue number4
StatePublished - 2008
Externally publishedYes


  • Manufacturing industry
  • Mark-ups
  • Product market competition
  • Productivity growth
  • South Africa


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