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Product Market Competition and Economic Performance in Norway

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  • Jens Høj
  • Michael Wise
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    Abstract

    Norwegian growth has been strong over the past decade. This development has been supported by the off-shore sector, but depleting oil reserves implies that growth will have to rely increasingly on the mainland economy. Empirical work shows that competition is important for promoting economic growth. Recognising the benefits of competition, the government wants to introduce regulatory reforms to stimulate economic growth. However, the promotion of competition has often conflicted with other policy objectives, such as maintaining a regionally dispersed population and a high degree of public ownership. This has lead to weak competition in a number of sectors, resulting in high prices, weak innovative activity and inefficient resource allocation. Reforms to promote product market competition in Norway should therefore inter alia focus on separating the public sector’s roles and functions as owner and regulator. This requires an increase in the independence of sector ... Concurrence sur les marchés de produits et performance économique en Norvège La Norvège a connu une croissance vigoureuse au cours des dix dernières années. Cette expansion a été alimentée par le secteur pétrolier offshore, mais l'épuisement progressif des réserves implique que l'économie continentale va devoir prendre peu à peu le relais pour soutenir la croissance. Des travaux empiriques montrent que la concurrence contribue de manière importante à l'expansion économique. Conscient des bienfaits de la concurrence, le gouvernement entend réformer la réglementation pour stimuler la croissance économique. Néanmoins, la promotion de la concurrence est souvent entrée en conflit avec d'autres objectifs, tels que le maintien d'une population géographiquement dispersée et du contrôle étendu de l'État sur diverses activités. Cela se traduit par un faible niveau de concurrence dans un certain nombre de secteurs, qui a pour corollaires des prix élevés, un manque de dynamisme en matière d'innovation et une allocation inefficiente des ressources. Les réformes ...

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    Bibliographic Info

    Paper provided by OECD Publishing in its series OECD Economics Department Working Papers with number 389.

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    Date of creation: 14 May 2004
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    Handle: RePEc:oec:ecoaaa:389-en

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    Keywords: Norway; network industries; regulatory reforms; competition law; productivity and growth; retail sector; product market competition; public procurement; public ownership; concurrence sur les marchés de produits; marchés publics; commerce de détail; actifs publics; droit de la concurrence; productivité et croissance; réforme de la réglementation; industrie de réseau; Norvège;

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