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Product Market Competition and Economic Performance in Norway

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  • Jens Høj
  • Michael Wise

Abstract

Norwegian growth has been strong over the past decade. This development has been supported by the off-shore sector, but depleting oil reserves implies that growth will have to rely increasingly on the mainland economy. Empirical work shows that competition is important for promoting economic growth. Recognising the benefits of competition, the government wants to introduce regulatory reforms to stimulate economic growth. However, the promotion of competition has often conflicted with other policy objectives, such as maintaining a regionally dispersed population and a high degree of public ownership. This has lead to weak competition in a number of sectors, resulting in high prices, weak innovative activity and inefficient resource allocation. Reforms to promote product market competition in Norway should therefore inter alia focus on separating the public sector’s roles and functions as owner and regulator. This requires an increase in the independence of sector ... Concurrence sur les marchés de produits et performance économique en Norvège La Norvège a connu une croissance vigoureuse au cours des dix dernières années. Cette expansion a été alimentée par le secteur pétrolier offshore, mais l'épuisement progressif des réserves implique que l'économie continentale va devoir prendre peu à peu le relais pour soutenir la croissance. Des travaux empiriques montrent que la concurrence contribue de manière importante à l'expansion économique. Conscient des bienfaits de la concurrence, le gouvernement entend réformer la réglementation pour stimuler la croissance économique. Néanmoins, la promotion de la concurrence est souvent entrée en conflit avec d'autres objectifs, tels que le maintien d'une population géographiquement dispersée et du contrôle étendu de l'État sur diverses activités. Cela se traduit par un faible niveau de concurrence dans un certain nombre de secteurs, qui a pour corollaires des prix élevés, un manque de dynamisme en matière d'innovation et une allocation inefficiente des ressources. Les réformes ...

Suggested Citation

  • Jens Høj & Michael Wise, 2004. "Product Market Competition and Economic Performance in Norway," OECD Economics Department Working Papers 389, OECD Publishing.
  • Handle: RePEc:oec:ecoaaa:389-en
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    File URL: http://dx.doi.org/10.1787/610454227534
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    Cited by:

    1. Rafael Fernández Sánchez, 2005. "Irlanda y Finlandia: Dos Modelos de Especialización en Tecnologías Avanzadas," Policy Papers del Instituto Complutense de Estudios Internacionales 05-03, Universidad Complutense de Madrid, Instituto Complutense de Estudios Internacionales.
    2. Grossmann, Volker & Steger, Thomas M., 2008. "Anti-competitive conduct, in-house R&D, and growth," European Economic Review, Elsevier, vol. 52(6), pages 987-1008, August.
    3. International Monetary Fund, 2005. "Finland; Selected Issues," IMF Staff Country Reports 05/36, International Monetary Fund.

    More about this item

    Keywords

    actifs publics; commerce de détail; competition law; concurrence sur les marchés de produits; droit de la concurrence; industrie de réseau; marchés publics; network industries; Norvège; Norway; product market competition; productivity and growth; productivité et croissance; public ownership; public procurement; regulatory reforms; retail sector; réforme de la réglementation;

    JEL classification:

    • K21 - Law and Economics - - Regulation and Business Law - - - Antitrust Law
    • L11 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Production, Pricing, and Market Structure; Size Distribution of Firms
    • L16 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Industrial Organization and Macroeconomics; Macroeconomic Industrial Structure
    • L33 - Industrial Organization - - Nonprofit Organizations and Public Enterprise - - - Comparison of Public and Private Enterprise and Nonprofit Institutions; Privatization; Contracting Out
    • L43 - Industrial Organization - - Antitrust Issues and Policies - - - Legal Monopolies and Regulation or Deregulation
    • L81 - Industrial Organization - - Industry Studies: Services - - - Retail and Wholesale Trade; e-Commerce
    • L87 - Industrial Organization - - Industry Studies: Services - - - Postal and Delivery Services
    • L9 - Industrial Organization - - Industry Studies: Transportation and Utilities
    • O57 - Economic Development, Innovation, Technological Change, and Growth - - Economywide Country Studies - - - Comparative Studies of Countries

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