---
canonical_url: "https://csls.ca/ipm-archive/ipm-issue-34/the-gains-from-more-competitive-regulation-settings-in-canada/"
title: "The Gains from More Competitive Regulation Settings in Canada"
author:
  name: "CSLS"
  url: "https://csls.ca/author/cslc/"
date_published: "2026-07-13T07:42:41+00:00"
date_modified: "2026-07-13T07:42:41+00:00"
post_type: "ipm"
summary: ""
ipm_issue_period:
  - "Spring 2018"
ipm_keyword:
  - "Canada"
  - "competition"
  - "FDI"
  - "GDP"
  - "OECD"
  - "PMR"
  - "product market regulation"
  - "Solow model"
  - "United States"
ipm_research_theme:
  - "Policy and institutions"
ipm_country_focus:
  - "Canada"
  - "OECD"
  - "United States"
featured_image: "https://csls.ca/wp-content/uploads/2026/06/IPM_50_banner.webp"
status: "publish"
---

# The Gains from More Competitive Regulation Settings in Canada

Canonical URL: https://csls.ca/ipm-archive/ipm-issue-34/the-gains-from-more-competitive-regulation-settings-in-canada/

# The Gains from More Competitive Regulation Settings in Canada

[Download full PDF article](https://csls.ca/wp-content/uploads/2026/07/IPM-Issue-34-1-Ab-Lorwerth-Rosell.pdf)

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Cite this article as:

Iorwerth, Aled ab, and Carlos Rosell. 2018. “The Gains from More Competitive Regulation Settings in Canada.” International Productivity Monitor, No. 34 (Spring 2018): 3–20. https://www.csls.ca/ipm-archive/ipm-issue-34/the-gains-from-more-competitive-regulation-settings-in-canada/

## Authors:

-
Aled ab Iorwerth
Economic Studies and Policy Analysis Division, Department of Finance Canada

-
Carlos Rosell
Finance Canada

## IPM Issue 34

Spring 2018 pp. 3–20

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## Abstract

## Résumé

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This article explores potential gains for Canada from making its regulatory framework as competition friendly as that in the United States. We estimate standard cross-country GDP growth regressions incorporating the OECD’s indicators of product market regulations (PMRs) that measure the extent to which regulations, laws and other rules inhibit product market competition. Based on the key point estimate (or the lower bound of its 95 per cent confidence interval), GDP per capita in Canada could be about 2.0 per cent (0.7 per cent) higher in the medium term (i.e. 5 years) and about 5.3 per cent (1.8 per cent) higher after 20 years as a result of making Canada’s 2013 regulatory settings related to foreign direct investment (FDI) as competitive as in the United States. However, government actions taken since 2013 have improved the competitiveness of these regulations. As a result, further changes needed to reach the US benchmark are not as great as they were in 2013 and would not generate as substantial gains. In addition to setting the right framework

Cet article explore les gains potentiels pour le Canada d’un cadre réglementaire aussi favorable à la concurrence que celui des États-Unis. Nous estimons des régressions standard de la croissance du PIB entre pays intégrant les indicateurs de réglementation des marchés de produits (RMP) de l’OCDE, qui mesurent dans quelle mesure les réglementations, les lois et autres règles freinent la concurrence sur les marchés de produits. Sur la base de l’estimation ponctuelle clé (ou de la borne inférieure de son intervalle de confiance à 95 %), le PIB par habitant au Canada pourrait être supérieur d’environ 2,0 % (0,7 %) à moyen terme (c’est-à-dire sur 5 ans) et d’environ 5,3 % (1,8 %) après 20 ans grâce à l’alignement des paramètres réglementaires de 2013 du Canada liés à l’investissement direct étranger sur ceux des États-Unis.

[Download full PDF](https://csls.ca/wp-content/uploads/2026/07/IPM-Issue-34-1-Ab-Lorwerth-Rosell.pdf)
