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How Regulatory Reforms in Sweden have boosted Productivity

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Author Info
Espen Erlandsen
Jens Lundsgaard ()

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Abstract

The economic crisis in the early 1990s prompted action on reforming the Swedish welfare state and its institutions, including deregulation of a wide range of product markets. In that way, Sweden took early action compared to other OECD countries currently struggling with how to make public finances more robust in an ageing context. The reforms that were implemented during the 1990s are now paying off in terms of productivity and GDP growth. Empirical evidence suggests that deregulation has delivered a considerable “productivity dividend”. Although significant progress therefore has been made, renewed regulatory reform is needed to safeguard Sweden’s ambitious public policy goals. Efforts should focus on improving enterprise formation and labour utilisation, as well as on providing better value for money in the public sector by raising its efficiency and delivering high quality services.

Comment les réformes réglementaires en Suède ont stimulé la productivité
La crise économique du début des années 90 a servi de catalyseur pour la réforme de l’État providence suédois, qui s’est aussi accompagnée par une vaste libéralisation de des marchés des produits. Ce faisant, la Suède a agi de manière précoce comparée à d'autres pays de l’OCDE qui peinent à trouver une solution pour assainir les finances publiques dans le contexte du vieillissement de la population. Les réformes mises en oeuvre au cours des années 90 se sont révélées payantes en termes de productivité et de croissance du PIB. Les données disponibles suggèrent que la déréglementation s’est soldée par un « dividende de productivité » considérable. Malgré d’importants progrès dans ce domaine, de nouvelles réformes réglementaires sont nécessaires afin de sauvegarder les objectifs de politique publique ambitieux de la Suède. Il faudrait se concentrer sur l’amélioration des conditions de création d’entreprise et une meilleure utilisation de la main d’oeuvre, en plus d’une meilleure valeur ajoutée dans le secteur public en augmentant son efficacité et la qualité des services fournis.

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Paper provided by OECD Economics Department in its series OECD Economics Department Working Papers with number 577.

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Date of creation: 24 Sep 2007
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Handle: RePEc:oec:ecoaaa:577-en

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Related research
Keywords: product market regulation network industries industrie de réseau regulatory reforms réforme réglementaire productivity dividend Dividende de productivié

Find related papers by JEL classification:
D40 - Microeconomics - - Market Structure and Pricing - - - General
E20 - Macroeconomics and Monetary Economics - - Macroeconomics: Consumption, Saving, Production, Employment, and Investment - - - General (includes Measurement and Data)
E60 - Macroeconomics and Monetary Economics - - Macroeconomic Policy, Macroeconomic Aspects of Public Finance, and General Outlook - - - General
F40 - International Economics - - Macroeconomic Aspects of International Trade and Finance - - - General
H11 - Public Economics - - Structure and Scope of Government - - - Structure and Scope of Government
H40 - Public Economics - - Publicly Provided Goods - - - General
H60 - Public Economics - - National Budget, Deficit, and Debt - - - General
J20 - Labor and Demographic Economics - - Demand and Supply of Labor - - - General
L11 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Production, Pricing, and Market Structure; Size Distribution of Firms
L50 - Industrial Organization - - Regulation and Industrial Policy - - - General
L51 - Industrial Organization - - Regulation and Industrial Policy - - - Economics of Regulation
L53 - Industrial Organization - - Regulation and Industrial Policy - - - Enterprise Policy
O47 - Economic Development, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - Measurement of Economic Growth; Aggregate Productivity; Cross-Country Output Convergence

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