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Improving the business regulatory environment in Poland

Author

Listed:
  • Javier Terrero-Dávila
  • Cristiana Vitale
  • Eszter Danitz

Abstract

A competition-friendly business regulatory environment is essential for the well-functioning of markets. It ensures that important policy goals are addressed, and market failures tackled. However, regulation can also create barriers to the entry and expansion of firms that may limit and distort competition and hinder the efficient allocation of resources, negatively affecting productivity and growth. Some of these barriers are necessary, but others may go beyond what is needed to address the policy objectives and the market failure(s) regulation is intended to solve. This paper relies on the last vintage of the Product Market Regulation indicators to determine to what extent Poland’s National Recovery and Resilience Plan aims to create a more competition-friendly business environment. The analysis suggests that only a limited number of the measures included in the Plan may address regulatory weaknesses identified by these indicators. Therefore, the paper suggests OECD best practices that the country could consider to remove unnecessary regulatory barriers and boost the benefits that the investments envisaged in the Plan could bring about.

Suggested Citation

  • Javier Terrero-Dávila & Cristiana Vitale & Eszter Danitz, 2023. "Improving the business regulatory environment in Poland," OECD Economics Department Working Papers 1764, OECD Publishing.
    • Handle: RePEc:oec:ecoaaa:1764-en
    DOI: 10.1787/caa5b5cc-en
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    More about this item

    Keywords

    Business Environment; Competition; European Union; Governance of State-Owned Enterprises; National Recovery and Resilience Plans; Network Sectors; Poland; Product Market Regulation; Productivity; Professional Services; Public Procurement; Regulation; Regulatory Environment;
    All these keywords.

    JEL classification:

    • D02 - Microeconomics - - General - - - Institutions: Design, Formation, Operations, and Impact
    • D24 - Microeconomics - - Production and Organizations - - - Production; Cost; Capital; Capital, Total Factor, and Multifactor Productivity; Capacity
    • D4 - Microeconomics - - Market Structure, Pricing, and Design
    • H54 - Public Economics - - National Government Expenditures and Related Policies - - - Infrastructures
    • K23 - Law and Economics - - Regulation and Business Law - - - Regulated Industries and Administrative Law
    • K32 - Law and Economics - - Other Substantive Areas of Law - - - Energy, Environmental, Health, and Safety Law
    • L1 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance
    • L2 - Industrial Organization - - Firm Objectives, Organization, and Behavior
    • L3 - Industrial Organization - - Nonprofit Organizations and Public Enterprise
    • L4 - Industrial Organization - - Antitrust Issues and Policies
    • L5 - Industrial Organization - - Regulation and Industrial Policy
    • L8 - Industrial Organization - - Industry Studies: Services
    • L9 - Industrial Organization - - Industry Studies: Transportation and Utilities
    • M20 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Economics - - - General
    • O52 - Economic Development, Innovation, Technological Change, and Growth - - Economywide Country Studies - - - Europe

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