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Policy areas for increasing productivity in Latvia

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  • Zuzana Smidova

    (OECD)

Abstract

Much of the convergence of the Latvian economy needs to come from productivity increases. To achieve this, policy makers should do more to facilitate the integration of the economy into global trade and promote competitive business environment. By benchmarking Latvia vis-à-vis the other Baltic but also some CEE peers, this paper identifies potential for decreasing the regulatory burden, removing trade and investment barriers and strengthening the competitive business environment as well as general framework conditions such as judiciary and access to finance. Furthermore, to ensure that knowledge transfer – essential for increasing productivity – does take place, reforms of the vocational education and training system, of lifelong learning and of policies for research and development, currently under implementation, have yet to deliver. L'action publique pour accroître la productivité en Lettonie La convergence de l’économie lettone devra pour une grande part s’appuyer sur des hausses de la productivité. Pour y parvenir, les responsables de l’action publique devraient prendre des mesures supplémentaires pour faciliter l’intégration de l’économie dans le commerce mondial et favoriser la compétitivité de l’environnement des entreprises. En évaluant la Lettonie vis-à-vis des autres pays baltes mais aussi des pays d’Europe centrale, ce document identifie un potentiel pour diminuer le fardeau de la réglementation, supprimer les barrières aux échanges et à l’investissement, augmenter la concurrence sur les marchés des produits, améliorer le système judiciaire et l'accès au financement. De plus, pour assurer que le transfert de connaissances dans l’économie, qui est essentiel pour la croissance de la productivité, s’instaure, la réforme du système d’enseignement et de formation professionnels et de l'apprentissage en continu ainsi que les politiques de recherche et développement, actuellement mises en oeuvre, n’ont pas encore porté leurs fruits.

Suggested Citation

  • Zuzana Smidova, 2015. "Policy areas for increasing productivity in Latvia," OECD Economics Department Working Papers 1255, OECD Publishing.
  • Handle: RePEc:oec:ecoaaa:1255-en
    DOI: 10.1787/5jrw57nr0f23-en
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    File URL: https://doi.org/10.1787/5jrw57nr0f23-en
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    References listed on IDEAS

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    More about this item

    Keywords

    competition; innovation; insolvency; productivity; trade barriers;
    All these keywords.

    JEL classification:

    • D43 - Microeconomics - - Market Structure, Pricing, and Design - - - Oligopoly and Other Forms of Market Imperfection
    • F43 - International Economics - - Macroeconomic Aspects of International Trade and Finance - - - Economic Growth of Open Economies
    • K21 - Law and Economics - - Regulation and Business Law - - - Antitrust Law
    • O38 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Government Policy
    • O47 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - Empirical Studies of Economic Growth; Aggregate Productivity; Cross-Country Output Convergence

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