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Too little Destruction too little Creation: A Schumpeterian Diagnosis of Barriers to Sustained Growth in Ukraine

Author

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  • Christian Gianella

    (OECD)

  • William Tompson

    (OECD)

Abstract

This paper examines problems of entry, exit and competition in Ukrainian product markets. It finds that Ukraine still has too little of all three, and that exit mechanisms, in particular, function poorly. Since impediments to entry and exit are largely the product of excessive and ill administered regulation, the paper also provides a systematic assessment of product-market regulation in Ukraine, using indicators developed by the OECD Economics Department. Finally, the paper presents the main findings of two empirical studies concerned with the potentially large benefits of opening up markets, via both increased competition and further privatisation, for productivity growth in Ukraine. This paper relates to the 2007 Economic Survey of Ukraine (www.oecd.org/eco/studies/ukraine). Une insuffisance de création-destruction : un diagnostic schumpétérien des freins à la croissance en Ukraine Cet article examine les questions de concurrence, d’entrée et de sortie des entreprises sur le marché des biens. Il montre que toutes trois demeurent insuffisantes en Ukraine, et que les mécanismes de sortie du marché, en particulier, fonctionnent de manière très imparfaite. Compte tenu du fait que les barrières à l’entrée et à la sortie sont largement le produit d’une réglementation excessive et mal appliquée, l’article donne une évaluation systématique du niveau de réglementation du marché des biens en Ukraine, en utilisant les indicateurs développés par le Département des affaires économiques. Enfin, l’article expose les principaux résultats de deux études empiriques évaluant les effets bénéfiques sur la croissance de la productivité de l’ouverture des marchés, d’une part par un accroissement de la concurrence et d’autre part par la poursuite des privatisations. Ce document se rapporte à l’Etude économique de l’Ukraine 2007 (www.oecd.org/eco/etudes/ukraine).

Suggested Citation

  • Christian Gianella & William Tompson, 2007. "Too little Destruction too little Creation: A Schumpeterian Diagnosis of Barriers to Sustained Growth in Ukraine," OECD Economics Department Working Papers 574, OECD Publishing.
  • Handle: RePEc:oec:ecoaaa:574-en
    DOI: 10.1787/111542115845
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    Citations

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    Cited by:

    1. International Monetary Fund, 2012. "Republic of Belarus: Selected Issues," IMF Staff Country Reports 2012/114, International Monetary Fund.
    2. Bessonova, Evguenia & Gonchar, Ksenia, 2019. "How the innovation-competition link is shaped by technology distance in a high-barrier catch-up economy," Technovation, Elsevier, vol. 86, pages 15-32.

    More about this item

    Keywords

    competition; concurrence; creative destruction; destruction créatrice; entry; entrée sur le marché; exit; privatisation; privatisation; product market regulation; restructuration; restructuring; réglementation sur les marchés des biens et du travail; sortie sur le marché; Ukraine; Ukraine;
    All these keywords.

    JEL classification:

    • D24 - Microeconomics - - Production and Organizations - - - Production; Cost; Capital; Capital, Total Factor, and Multifactor Productivity; Capacity
    • D43 - Microeconomics - - Market Structure, Pricing, and Design - - - Oligopoly and Other Forms of Market Imperfection
    • H11 - Public Economics - - Structure and Scope of Government - - - Structure and Scope of Government
    • L1 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance
    • L5 - Industrial Organization - - Regulation and Industrial Policy
    • L9 - Industrial Organization - - Industry Studies: Transportation and Utilities
    • O12 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Microeconomic Analyses of Economic Development
    • P23 - Political Economy and Comparative Economic Systems - - Socialist and Transition Economies - - - Factor and Product Markets; Industry Studies; Population

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