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Too little Destruction too little Creation: A Schumpeterian Diagnosis of Barriers to Sustained Growth in Ukraine

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  • Christian Gianella
  • William Tompson

Abstract

This paper examines problems of entry, exit and competition in Ukrainian product markets. It finds that Ukraine still has too little of all three, and that exit mechanisms, in particular, function poorly. Since impediments to entry and exit are largely the product of excessive and ill administered regulation, the paper also provides a systematic assessment of product-market regulation in Ukraine, using indicators developed by the OECD Economics Department. Finally, the paper presents the main findings of two empirical studies concerned with the potentially large benefits of opening up markets, via both increased competition and further privatisation, for productivity growth in Ukraine. This paper relates to the 2007 Economic Survey of Ukraine (www.oecd.org/eco/studies/ukraine). Une insuffisance de création-destruction : un diagnostic schumpétérien des freins à la croissance en Ukraine Cet article examine les questions de concurrence, d’entrée et de sortie des entreprises sur le marché des biens. Il montre que toutes trois demeurent insuffisantes en Ukraine, et que les mécanismes de sortie du marché, en particulier, fonctionnent de manière très imparfaite. Compte tenu du fait que les barrières à l’entrée et à la sortie sont largement le produit d’une réglementation excessive et mal appliquée, l’article donne une évaluation systématique du niveau de réglementation du marché des biens en Ukraine, en utilisant les indicateurs développés par le Département des affaires économiques. Enfin, l’article expose les principaux résultats de deux études empiriques évaluant les effets bénéfiques sur la croissance de la productivité de l’ouverture des marchés, d’une part par un accroissement de la concurrence et d’autre part par la poursuite des privatisations. Ce document se rapporte à l’Etude économique de l’Ukraine 2007 (www.oecd.org/eco/etudes/ukraine).

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File URL: http://dx.doi.org/10.1787/111542115845
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Bibliographic Info

Paper provided by OECD Publishing in its series OECD Economics Department Working Papers with number 574.

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Date of creation: 03 Sep 2007
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Handle: RePEc:oec:ecoaaa:574-en

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Keywords: competition; restructuring; privatisation; exit; entry; creative destruction; product market regulation; Ukraine; concurrence; destruction créatrice; Ukraine; sortie sur le marché; entrée sur le marché; réglementation sur les marchés des biens et du travail; restructuration; privatisation;

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