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Enhancing private investment in the Netherlands

Author

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  • Sanne Zwart

    (OECD)

Abstract

Investment has rebounded during the recent economic revival, but from a low level. The investment slump during the crisis was mostly caused by a fall in residential investment. However, business investment has been trending downwards since 1990, holding back capital stock accumulation and productivity. Raising residential investment is necessary to meet the growing demand, and in particular more private rental housing is needed as the current small stock, which reflects rental regulation and other housing policies, hampers the functioning of the housing market. Financing of owner-occupied housing can be made more resilient by stepping up measures taken after the crisis. Regarding business investment, further reinforcing the already good framework conditions would help to turn its cyclical upswing into a durably higher level. Meeting targets on R&D expenditure and renewable energy requires lifting investments in the related areas. Financing conditions, which are widely perceived as an important bottleneck, could be improved by stimulating competition in the banking sector and the development of alternative financing sources. Stimuler l'investissement privé aux Pays-Bas L’investissement s’est redressé depuis la reprise économique récente, mais à partir d’un niveau faible. La forte diminution observée pendant la crise était principalement imputable à la chute de l’investissement résidentiel. Cependant, l’investissement productif est orienté à la baisse depuis 1990, pesant sur l’accumulation du stock de capital et sur la productivité. Il est nécessaire d’accroître l’investissement résidentiel pour faire face à la demande croissante ; en particulier, il faut développer le parc locatif privé car le stock actuel, dont le niveau reflète l’encadrement des loyers et d’autres mesures en matière de logement, n’est pas favorable à un bon fonctionnement du marché immobilier. Étoffer les mesures prises après la crise pourrait permettre d’accroître la robustesse du financement des logements occupés par leurs propriétaires. Pour ce qui est de l’investissement des entreprises, continuer de renforcer les conditions cadres, déjà satisfaisantes, pourrait contribuer à transformer le redressement cyclique en amélioration durable. Atteindre les objectifs en matière de dépenses de R-D et d’énergies renouvelables nécessitera d’accroître les investissements dans les domaines concernés. Les conditions de financement, largement perçues comme un obstacle de taille, pourraient être améliorées par des mesures visant à stimuler la concurrence dans le secteur bancaire et par le développement d’autres sources de financement.

Suggested Citation

  • Sanne Zwart, 2016. "Enhancing private investment in the Netherlands," OECD Economics Department Working Papers 1305, OECD Publishing.
  • Handle: RePEc:oec:ecoaaa:1305-en
    DOI: 10.1787/5jlwjg6sq2g6-en
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    Cited by:

    1. Balázs Égert, 2021. "Investment in OECD Countries: a Primer," Comparative Economic Studies, Palgrave Macmillan;Association for Comparative Economic Studies, vol. 63(2), pages 200-223, June.
    2. Peter Mayerhofer, 2016. "Unternehmensinvestitionen in den österreichischen Bundesländern. Entwicklung – Struktur – Funktion regionaler Förderung," WIFO Studies, WIFO, number 58936.

    More about this item

    Keywords

    housing market; investment; research and development; SME financing; sustainable development;
    All these keywords.

    JEL classification:

    • E22 - Macroeconomics and Monetary Economics - - Consumption, Saving, Production, Employment, and Investment - - - Investment; Capital; Intangible Capital; Capacity
    • G21 - Financial Economics - - Financial Institutions and Services - - - Banks; Other Depository Institutions; Micro Finance Institutions; Mortgages
    • G23 - Financial Economics - - Financial Institutions and Services - - - Non-bank Financial Institutions; Financial Instruments; Institutional Investors
    • O38 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Government Policy
    • Q01 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - General - - - Sustainable Development
    • R31 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Real Estate Markets, Spatial Production Analysis, and Firm Location - - - Housing Supply and Markets

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