2024-05-12-ITIF-为什么美国经济需要更多而不是更少的整合（英）_30页_467kb

Why the US Economy Needs More Consolidation, Not Less

Core Content

This report argues that the U.S. economy benefits from greater consolidation in certain industries, as larger firms tend to be more productive due to economies of scale. While most industries see increased productivity with larger firms, some remain fragmented due to government regulations, which can hinder the growth and efficiency of firms. The report focuses on five key sectors—banking, physician's offices, construction, farming, and telecommunications—where consolidation could significantly improve productivity and efficiency.

Main Points

1. Larger Firms Are More Productive

• Scale economies reduce average costs and increase productivity.
• In 710 out of 938 industries, firms with 500 or more employees have higher receipts per worker than smaller firms.
• In 228 industries, smaller firms are more productive, but these are typically those where scale is not essential (e.g., nail salons, food trucks).
• Larger firms are more efficient in most sectors, with 21.7% higher receipts in 2017 compared to the average firm.

2. Consolidation Enhances Efficiency

• Mergers and acquisitions (M&A) allow firms to grow, access scale economies, and reduce marginal production costs.
• Consolidation can also lead to synergy effects, such as shared resources and knowledge, which lower costs and improve service quality.
• ICT adoption is more common in larger firms, as it requires significant upfront investment and benefits from scale.

3. Government Policies Discourage Consolidation

• Regulations at the local, state, and federal levels often discourage or restrict consolidation, even in industries that benefit from it.
• Examples include unit banking laws, Certificate of Need (CON) laws, and overly burdensome M&A approval processes.
• These policies can limit firm growth, reduce efficiency, and increase costs for consumers.

4. Policy Recommendations

• Policymakers should modify or remove regulations that prevent consolidation.
• A new Executive Order on removing barriers to consolidation could help by:
  • Encouraging regulatory size neutrality.
  • Reviewing policies to eliminate those that keep industries fragmented.
• In banking, physician's offices, and construction, specific regulatory changes are suggested to promote consolidation and efficiency.

Key Industries and Sectors

Banking

• Larger banks are more productive and efficient.
• Unit banking laws historically restricted consolidation, leading to a fragmented industry.
• Despite a decline in the number of banks, concentration ratios (C4 and C8) are still decreasing, indicating less monopolistic power.
• Government policies continue to discourage mergers, even though they could lead to increased efficiency and productivity.

Physician's Offices

• Larger physician offices are more efficient due to scale economies and ICT adoption.
• CON laws have restricted expansion and consolidation, increasing costs and reducing competition.
• These laws protect small firms from competition, disincentivize growth, and hinder efficiency.
• State-level regulations and antitrust scrutiny further slow consolidation in the healthcare sector.

Construction

• Larger firms are better at managing complex projects and adopting technologies that improve coordination.
• High fixed costs for new technologies make consolidation more beneficial for firms.
• Fragmentation persists due to regulatory barriers and lack of standardization.

Farming

• Larger farms are more productive, especially in terms of scale economies.
• Government regulations often discourage consolidation, keeping the industry fragmented.
• Small farm sizes suggest that scale benefits are not being realized.

Telecommunications

• Larger telecom firms are more efficient and have better access to ICT and innovation.
• Regulatory fragmentation across states and localities hinders consolidation.
• Policy changes could help reduce barriers and allow for more efficient market structures.

Conclusion

• The U.S. economy has been experiencing slow productivity growth since 2005, which is partly due to fragmentation in key industries.
• Consolidation can lead to greater efficiency and productivity, but is often discouraged by policies that favor small businesses.
• Balancing competition and consolidation is essential for long-term economic growth.
• Policymakers should reconsider current antitrust policies and remove barriers to consolidation in industries where it is beneficial.

Endnotes

• The report highlights the positive impact of consolidation on productivity.
• It underscores the role of government policy in shaping market structures.
• The need for regulatory reform is emphasized to allow for more efficient market outcomes.