WP3: Market Environment Indicators
Objective: to construct a range of market environment indicators and investigate the role of these factors in industry growth.
(Full details of the workpackage can be found in the description of work).
Review of existing literature
The first task of WP3 will be to review critically the existing literature on measures of market environment, both what is measured and how the various estimates compare with each other. This will explore both international (e.g. European Commission, OECD) and national country studies. The result will be a first attempt to characterise service sector industries according to their degrees of competition, regulation and international presence.
Following on from this review, the project will develop indicators of market environment for the service sectors. These indicators will include measures of industry structure (firm size, concentration), competition (Lerner and Boone indices), regulation (product and labour markets), industry dynamics (entry and exit, production frontier measures) and International presence (trade, outsourcing, foreign ownership).
Analysis and validation
The second part of this work package will be devoted to analysis and validation. This will consider the impact of these various measures of market environment on growth and productivity in service sectors and will link this to the EU KLEMS based measures from WP1 and the measures of innovation, ICT use and intangibles from WP2.
Outputs of the workpackage