--- canonical_url: "https://csls.ca/ipm-archive/ipm-issue-49/the-relationship-between-efficiencies-defenses-for-mergers-and-tfp-growth/" title: "The Relationship between Efficiencies Defenses for Mergers and TFP Growth" author: name: "CSLS" url: "https://csls.ca/author/cslc/" date_published: "2026-07-13T08:15:33+00:00" date_modified: "2026-07-17T10:13:23+00:00" post_type: "ipm" summary: "" ipm_issue_period: - "Fall 2025" ipm_keyword: - "2R Strategy" - "Canada" - "competition law" - "cross-country" - "efficiencies defense" - "mergers" - "Penn World Tables" - "productivity" - "Shaban" - "TFP" ipm_research_theme: - "Policy and institutions" ipm_country_focus: - "Canada" - "International" - "OECD" featured_image: "https://csls.ca/wp-content/uploads/2026/06/IPM_50_banner.webp" status: "publish" --- # The Relationship between Efficiencies Defenses for Mergers and TFP Growth Canonical URL: https://csls.ca/ipm-archive/ipm-issue-49/the-relationship-between-efficiencies-defenses-for-mergers-and-tfp-growth/ # The Relationship between Efficiencies Defenses for Mergers and TFP Growth [Download full PDF article](https://csls.ca/wp-content/uploads/2026/07/IPM-Issue-49-4-Shaban.pdf) Cite this article × Cite this article as: Shaban, Robin. 2025. “The Relationship between Efficiencies Defenses for Mergers and TFP Growth.” International Productivity Monitor, No. 49 (Fall 2025): 82–102. https://csls.ca/ipm-archive/ipm-issue-49/the-relationship-between-efficiencies-defenses-for-mergers-and-tfp-growth/ ## Author: - Robin Shaban 2R Strategy ## IPM Issue 49 Fall 2025 pp. 82–102 ## Related IPM articles [Efficiency Adjustment of Hours Worked: Two Possible Modifications of a Jorgensen Production Model Barbara Fraumeni Fall 2025 | IPM Issue 49 | pp. 103–115](https://csls.ca/ipm-archive/ipm-issue-49/efficiency-adjustment-of-hours-worked-two-possible-modifications-of-a-jorgensen-production-model/) [Labour Productivity as a Measure of Technological Change Ulrich Kohli Fall 2025 | IPM Issue 49 | pp. 64–81](https://csls.ca/ipm-archive/ipm-issue-49/labour-productivity-as-a-measure-of-technological-change/) [Adult Skills and Productivity: New Evidence from PIAAC 2023 Dan Andrews, Balázs Égert, Christine de La Maisonneuve Fall 2025 | IPM Issue 49 | pp. 41–63](https://csls.ca/ipm-archive/ipm-issue-49/adult-skills-and-productivity-new-evidence-from-piaac-2023/) [Appendix: Variable Definitions and Country/Sector Coverage for Regulatory Reform Analysis Gilbert Cette, Jimmy Lopez, Giuseppe Nicoletti, Océane Vernerey Fall 2025 | IPM Issue 49 | pp. 1–18](https://csls.ca/ipm-archive/ipm-issue-49/appendix-variable-definitions-and-country-sector-coverage-for-regulatory-reform-analysis/) [The Potential Impact of Pro-competitive Regulatory Reforms on Productivity and Growth in Canada Gilbert Cette, Jimmy Lopez, Giuseppe Nicoletti, Océane Vernerey Fall 2025 | IPM Issue 49 | pp. 3–40](https://csls.ca/ipm-archive/ipm-issue-49/the-potential-impact-of-pro-competitive-regulatory-reforms-on-productivity-and-growth-in-canada/) [IPM Issue 49 Editors’ Overview Andrew Sharpe, Bart van Ark, Paul Schreyer Fall 2025 | IPM Issue 49 | pp. 1–2](https://csls.ca/ipm-archive/ipm-issue-49/) [Appendix: UK Productivity Growth Rates Across Data Vintages and Studies Josh Martin Spring 2025 | IPM Issue 48 | pp. 65–73](https://csls.ca/ipm-archive/ipm-issue-48/appendix-uk-productivity-growth-rates-across-data-vintages-and-studies/) [The UK Productivity Slowdown: A Review of Timing, Magnitude, and Drivers Josh Martin Spring 2025 | IPM Issue 48 | pp. 1–34](https://csls.ca/ipm-archive/ipm-issue-48/the-uk-productivity-slowdown-a-review-of-timing-magnitude-and-drivers/) [Opportunities and Risks of Artificial Intelligence for Productivity Francesco Filippucci, Peter Gal, Katharina Laengle, Matthias Schief, Filiz Unsal Spring 2025 | IPM Issue 48 | pp. 1–26](https://csls.ca/ipm-archive/ipm-issue-48/opportunities-and-risks-of-artificial-intelligence-for-productivity/) [Using Ecosystem Accounting to Integrate the Environment in Measures of Multifactor Productivity Carl Obst Fall 2024 | IPM Issue 47 | pp. 87–108](https://csls.ca/ipm-archive/ipm-issue-47/using-ecosystem-accounting-to-integrate-the-environment-in-measures-of-multifactor-productivity/) ## Abstract ## Résumé EN FR Copy link Email LinkedIn This article investigates whether efficiencies defenses in merger control lead to greater economic efficiency, specifically by examining their impact on national total factor productivity (TFP) growth. Efficiencies defenses are provisions in competition law that allow efficiencies from mergers to be weighed against potential harms. While increasingly common—present in 40.4 per cent of countries by 2010—their effectiveness remains underexplored. To address this gap, the study adapts the econometric model from Buccirossi et al. (2013), using data from the Penn World Tables version 10.01 and the Comparative Competition Law Dataset (Bradford et al., 2018). The analysis estimates the causal relationship between the introduction of efficiencies defenses and TFP growth. The results yield two key findings. First, introducing efficiencies defenses is generally associated with higher TFP growth, suggesting they may enhance economic performance. However, the effectiveness likely varies by the design and implementation of these provisions—an area for future research. Second, these legal reforms often coincide with increased enforcement resources. While efficiencies defenses appear to contribute to productivity gains, their impact depends heavily on the capacity of enforcement agencies. Without sufficient resources, even well-designed competition laws are unlikely to produce meaningful results. Cet article examine si les défenses fondées sur les efficiences dans le contrôle des fusions conduisent à une plus grande efficience économique, en examinant spécifiquement leur impact sur la croissance de la PMF nationale. Les défenses fondées sur les efficiences sont des dispositions du droit de la concurrence qui permettent de mettre en balance les efficiences des fusions avec les préjudices potentiels. Bien que de plus en plus courantes — présentes dans 40,4 % des pays en 2010 — leur efficacité reste peu explorée. L’étude adapte le modèle économétrique de Buccirossi et coll. (2013), à l’aide de données des Penn World Tables et de l’ensemble de données comparatifs sur le droit de la concurrence. Les résultats livrent deux constats clés sur la relation causale entre l’introduction des défenses d’efficience et la croissance de la PMF. [Download full PDF](https://csls.ca/wp-content/uploads/2026/07/IPM-Issue-49-4-Shaban.pdf)