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Product Market Competition and Economic Performance in Finland

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Author Info
Jens Høj
Michael Wise ()
Abstract

Following the deep recession in the early 1990s growth has been strong, but the scope for economic catch-up remains considerable and cross-country empirical evidence suggests that enhancing competition is an important means of achieving this. Structural reforms to strengthen competition in the early 1990s did boost growth and were also ahead of similar developments in the EU. However, indicators suggest that relatively weak competition remains in a number of sectors. Moreover, potential competition is reduced by a sparse population and relative long distances to large markets, which together with the prevalence of local monopolies and public ownership in many network industries, point to the need for greater vigilance to sustain and promote competition. Further reforms to promote product market competition should focus on fundamental changes in the regulatory approach as well as more incremental measures to intensify competition. The competition authority should concentrate ...

Concurrence sur le marché des biens et performance économique en Finlande

Après la sévère récession des années 1990, la croissance économique a été forte mais la convergence en termes de la productivité est encore loin d’être complète et les comparaisons empiriques internationales suggèrent qu’un renforcement de la concurrence pourrait résorber une part significative de ce retard. Certes, les réformes structurelles mises en œuvre au début des années 1990 pour renforcer la concurrence ont soutenu la croissance et ont même souvent été plus précoces qu’au sein de l’Union Européenne. Néanmoins, divers indicateurs suggèrent que le degré de concurrence reste insuffisant dans de nombreux secteurs. En outre, le degré potentiel de concurrence reste contenu en raison de l’éparpillement de la population et l’éloignement par rapport des longues distances d’accès aux grands marchés, qui, combinés à l’importance des monopoles locaux et de l’actionnariat de l’état dans de nombreuses industries de réseaux, suggèrent la nécessité d’une vigilance renforcée pour ...

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Paper provided by OECD Economics Department in its series OECD Economics Department Working Papers with number 413.

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Date of creation: 20 Dec 2004
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Handle: RePEc:oec:ecoaaa:413-en

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Keywords: network industries industrie de réseau réforme structurelle Finland regulatory reforms Finlande competition law productivity and growth retail sector public procurement droit de la concurrence productivité et croissance product market competition public ownership concurrence sur les marchés de biens vente au détail achat public secteur public

Find related papers by JEL classification:
K21 - Law and Economics - - Regulation and Business Law - - - Antitrust Law
L11 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Production, Pricing, and Market Structure; Size Distribution of Firms
L16 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Industrial Organization and Macroeconomics; Macroeconomic Industrial Structure
L33 - Industrial Organization - - Nonprofit Organizations and Public Enterprise - - - Boundaries of Public and Private Enterprise; Privatization; Contracting Out
L43 - Industrial Organization - - Antitrust Issues and Policies - - - Legal Monopolies and Regulation or Deregulation
L81 - Industrial Organization - - Industry Studies: Services - - - Retail and Wholesale Trade; e-Commerce
L87 - Industrial Organization - - Industry Studies: Services - - - Postal and Delivery Services
L9 - Industrial Organization - - Industry Studies: Transportation and Utilities
O57 - Economic Development, Technological Change, and Growth - - Economywide Country Studies - - - Comparative Studies of Countries

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