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The Benefits of Liberalising Product Markets and Reducing Barriers to International Trade and Investment in the OECD


  • OECD


This paper provides an assessment of the impact of a package of structural reforms in all OECD countries on their long-run trade and output gains. The package includes reforms that reduce competition-restraining regulations, cut tariff barriers and ease restrictions on foreign direct investment to “best practice” levels in the OECD area. The analysis, which is based on earlier OECD studies, indicates that such reforms could lead to gains in GDP per capita in OECD countries of up to 4 to 5 per cent. As the analysis is confined to a relatively narrow set of policies and abstracts from potential dynamic effects from reform-induced increases in innovation, the overall gains from broad reforms could be significantly higher than reported in the paper. Les bénéfices de la libéralisation des marchés de produits et de la réduction des barrières aux échanges et aux investissements internationaux dans les pays de l'OCDE Ce document offre une évaluation des réformes globales structurelles dans tous les pays de l'OCDE sur les échanges et la croissance de long terme. Ces réformes incluent l’ensemble des mesures politiques visant la réduction de la réglementation anti-compétitive, la baisse des barrières tarifaires et des restrictions sur les investissements directs étrangers vers les «meilleures pratiques» observées au sein des pays de l’OCDE. L’analyse, qui s’appuie sur de précédents travaux de l’OCDE, montre que de telles réformes peuvent conduire à une augmentation du PIB par habitant entre 4 et 5 pour cent dans les pays de l'OCDE. Étant donné que l’analyse ne couvre qu’un nombre de mesures spécifiques et exclut les effets dynamiques potentiels de l’innovation, les bénéfices tirés d’un ensemble de réformes beaucoup plus large pourraient bien être plus élevés que ceux reportés dans ce document.

Suggested Citation

  • Oecd, 2005. "The Benefits of Liberalising Product Markets and Reducing Barriers to International Trade and Investment in the OECD," OECD Economics Department Working Papers 463, OECD Publishing.
  • Handle: RePEc:oec:ecoaaa:463-en

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    References listed on IDEAS

    1. Alfonso Arpaia & Giuseppe Carone, 2004. "Do labour taxes (and their composition) affect wages in the short and in the long run?," Public Economics 0411004, EconWPA.
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    3. Kwang-Yeol Yoo, 2003. "Corporate Taxation of Foreign Direct Investment Income 1991-2001," OECD Economics Department Working Papers 365, OECD Publishing.
    4. Francesco Daveri & Guido Tabellini, 2000. "Unemployment, growth and taxation in industrial countries," Economic Policy, CEPR;CES;MSH, vol. 15(30), pages 47-104, April.
    5. Katrin Millock & Céline Nauges & Thomas Sterner, 2004. "Environmental Taxes: A Comparison of French and Swedish Experience from Taxes on Industrial Air Pollution," ifo DICE Report, ifo Institute - Leibniz Institute for Economic Research at the University of Munich, vol. 2(1), pages 30-34, 04.
    6. Calmfors, L. & Nymoen, R., 1990. "Real Wage Adjustment And Employment Policies In The Nordic Countries," Papers 461, Stockholm - International Economic Studies.
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    8. Alfonso Arpaia & Giuseppe Carone, 2004. "Do labour taxes (and their composition) affect wages in the short and the long run? - Alfonso Arpaia and Giuseppe Carone," European Economy - Economic Papers 2008 - 2015 216, Directorate General Economic and Financial Affairs (DG ECFIN), European Commission.
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    Cited by:

    1. Annette Bongardt* & Francisco Torres**, 2007. "Institutions, Governance and Economic Growth in the EU: Is There a Role for the Lisbon Strategy?," Intereconomics: Review of European Economic Policy, Springer;German National Library of Economics;Centre for European Policy Studies (CEPS), vol. 42(1), pages 32-42, January.
    2. Bernard Hoekman, 2015. "Trade Agreements and International Regulatory Cooperation in a Supply Chain World," RSCAS Working Papers 2015/04, European University Institute.

    More about this item


    commerce international; croissance et productivité; foreign direct investment; growth and productivity; international trade; investissement direct étranger; regulation; réglementation;

    JEL classification:

    • F13 - International Economics - - Trade - - - Trade Policy; International Trade Organizations
    • F21 - International Economics - - International Factor Movements and International Business - - - International Investment; Long-Term Capital Movements
    • K2 - Law and Economics - - Regulation and Business Law
    • O4 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity

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