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Regulation in Services: OECD Patterns and Economic Implications

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  • Giuseppe Nicoletti

Abstract

The paper looks at patterns of regulation in service industries and explores their implications for service performance. Focusing on restrictions to market mechanisms, a map of the state of service regulation in OECD countries is provided, based on data recently collected and summarised by the OECD. The paper also surveys the available cross-country empirical evidence on the effects of regulatory reform on service productivity, prices and innovation. Finally, it discusses ways in which regulation can encourage competition, efficiency and investment in those segments of the service industries where non-competitive elements persist. The main conclusions reached are: i) in the past two decades OECD governments extensively reformed regulatory environments in both competitive and network service industries, generally making them closer to market mechanisms; ii) however due to differences in initial conditions and in the pace of reform, within each service industry the dispersion of ... Cette étude analyse les approches réglementaires dans les secteurs des services et explore leurs implications pour les performances sectorielles dans les pays de l’OCDE. En concentrant l’attention sur les restrictions imposées aux mécanismes de marché, l’étude décrit l’état de la régulation des services en 1998 à partir des données récemment rassemblées par l’OCDE. L’étude examine aussi l’évidence empirique concernant les effets de la réforme de la réglementation sur la productivité, les prix et l’innovation dans les services. Enfin, elle analyse la manière dont la régulation peut encourager la concurrence, l’efficience et l’investissement dans les marchés des services où il existe encore des segments non-concurrentiels. Les principales conclusions sont : i) au cours des deux dernières décennies les gouvernements de l’OCDE ont réformé d’une façon extensive les réglementations concernant les services purement concurrentiels et les services de réseaux ; ii) pourtant, à cause de ...

Suggested Citation

  • Giuseppe Nicoletti, 2001. "Regulation in Services: OECD Patterns and Economic Implications," OECD Economics Department Working Papers 287, OECD Publishing.
  • Handle: RePEc:oec:ecoaaa:287-en
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    File URL: http://dx.doi.org/10.1787/223766183220
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    Cited by:

    1. Kugler, Adriana & Pica, Giovanni, 2003. "Effects of Employment Protection and Product Market Regulations on the Italian Labor Market," IZA Discussion Papers 948, Institute for the Study of Labor (IZA).
    2. Henk Kox & Arjan Lejour, 2005. "Liberalisation of the European services market and its impact on Switzerland," CPB Memorandum 130, CPB Netherlands Bureau for Economic Policy Analysis.
    3. Tomaso Duso, 2002. "On the Politics of the Regulatory Reform: Econometric Evidence from the OECD Countries," CIG Working Papers FS IV 02-07, Wissenschaftszentrum Berlin (WZB), Research Unit: Competition and Innovation (CIG).
    4. Kugler, Adriana & Pica, Giovanni, 2003. "The effects of employment protection and product market regulations on the Italian labor market," Discussion Paper Series In Economics And Econometrics 0310, Economics Division, School of Social Sciences, University of Southampton.
    5. Pascal Petit, 2002. "The Roots of the New Economy: An Institutional Perspective," International Productivity Monitor, Centre for the Study of Living Standards, vol. 4, pages 39-54, Spring.
    6. Alexei P Kireyev, 2002. "Liberalization of Trade in Financial Services and Financial Sector Stability (Analytical Approach)," IMF Working Papers 02/138, International Monetary Fund.
    7. Panagiotis Staikouras, 2004. "Structural Reform Policy: Privatisation and Beyond—The Case of Greece," European Journal of Law and Economics, Springer, vol. 17(3), pages 373-398, May.
    8. Arjan Lejour & Henk Kox & Roland de Bruijn, 2006. "The trade-induced effects of the Services Directive and the country of origin principle," CPB Document 108, CPB Netherlands Bureau for Economic Policy Analysis.
    9. Antonios Georgopoulos & Kostas Karamanis, 2012. "The implications of the liberalization in telecommunication markets for market structure and price policy: evidence from a small open economy," Applied Economics, Taylor & Francis Journals, vol. 44(2), pages 253-263, January.
    10. Yvonne Wolfmayr, 2008. "Trade Barriers in Services and Competitive Strengths in the Austrian Service Sector - An Analysis at the Detailed Sector Level," FIW Research Reports series I-007, FIW.
    11. Hoekman, Bernard & Mattoo, Aaditya, 2008. "Services trade and growth," Policy Research Working Paper Series 4461, The World Bank.
    12. Esther Gordo & Javier Jareño & Alberto Urtasun, 2006. "Radiografía del sector servicios en España," Occasional Papers 0607, Banco de España;Occasional Papers Homepage.
    13. Henk Kox & Arjan Lejour & Raymond Montizaan, 2004. "The free movement of services within the EU," CPB Document 69, CPB Netherlands Bureau for Economic Policy Analysis.

    More about this item

    Keywords

    competition policy; industrie de réseau; liberalisation; libéralisation; network industries; politique de la concurrence; privatisation; privatisation; regulation; regulatory reforms; réforme de la réglementation; réglementation; services; services;

    JEL classification:

    • K23 - Law and Economics - - Regulation and Business Law - - - Regulated Industries and Administrative Law
    • L43 - Industrial Organization - - Antitrust Issues and Policies - - - Legal Monopolies and Regulation or Deregulation
    • L50 - Industrial Organization - - Regulation and Industrial Policy - - - General
    • L51 - Industrial Organization - - Regulation and Industrial Policy - - - Economics of Regulation
    • L80 - Industrial Organization - - Industry Studies: Services - - - General
    • L9 - Industrial Organization - - Industry Studies: Transportation and Utilities

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