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Competition and innovation in developing countries

Tesis para optar al grado de Magíster en Análisis Económico / Using the Climate Investment Survey from the World Bank, we find a negative relationship between competition and innovation in developing countries. This result supports the idea of Schumpeter (1942) that competition can harm innovation. We deal with endogeneity issues using as instrument the interaction between industry turnover and entry regulation in the U.S. The basic idea is that entry regulations have a more pronounced and negative effect on competition in those industries with more natural entry. For this, we find that relevant competition is at the country-level rather than at country-industry level. Finally, we find no evidence of heterogeneity on this relationship across firms and industries.

Identiferoai:union.ndltd.org:UCHILE/oai:repositorio.uchile.cl:2250/113653
Date12 1900
CreatorsCampusano Gárate, Rolando
ContributorsAlvarez, Roberto, Postgrado Economía y Negocios
PublisherUniversidad de Chile
Source SetsUniversidad de Chile
LanguageEnglish
Detected LanguageEnglish
TypeTesis
RightsAtribución-NoComercial-SinDerivadas 3.0 Chile, http://creativecommons.org/licenses/by-nc-nd/3.0/cl/

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