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How Regulatory Reforms in Sweden have boosted Productivity

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  • Espen Erlandsen
  • Jens Lundsgaard

Abstract

The economic crisis in the early 1990s prompted action on reforming the Swedish welfare state and its institutions, including deregulation of a wide range of product markets. In that way, Sweden took early action compared to other OECD countries currently struggling with how to make public finances more robust in an ageing context. The reforms that were implemented during the 1990s are now paying off in terms of productivity and GDP growth. Empirical evidence suggests that deregulation has delivered a considerable “productivity dividend”. Although significant progress therefore has been made, renewed regulatory reform is needed to safeguard Sweden’s ambitious public policy goals. Efforts should focus on improving enterprise formation and labour utilisation, as well as on providing better value for money in the public sector by raising its efficiency and delivering high quality services. Comment les réformes réglementaires en Suède ont stimulé la productivité La crise économique du début des années 90 a servi de catalyseur pour la réforme de l’État providence suédois, qui s’est aussi accompagnée par une vaste libéralisation de des marchés des produits. Ce faisant, la Suède a agi de manière précoce comparée à d'autres pays de l’OCDE qui peinent à trouver une solution pour assainir les finances publiques dans le contexte du vieillissement de la population. Les réformes mises en oeuvre au cours des années 90 se sont révélées payantes en termes de productivité et de croissance du PIB. Les données disponibles suggèrent que la déréglementation s’est soldée par un « dividende de productivité » considérable. Malgré d’importants progrès dans ce domaine, de nouvelles réformes réglementaires sont nécessaires afin de sauvegarder les objectifs de politique publique ambitieux de la Suède. Il faudrait se concentrer sur l’amélioration des conditions de création d’entreprise et une meilleure utilisation de la main d’oeuvre, en plus d’une meilleure valeur ajoutée dans le secteur public en augmentant son efficacité et la qualité des services fournis.

Suggested Citation

  • Espen Erlandsen & Jens Lundsgaard, 2007. "How Regulatory Reforms in Sweden have boosted Productivity," OECD Economics Department Working Papers 577, OECD Publishing.
  • Handle: RePEc:oec:ecoaaa:577-en
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    File URL: http://dx.doi.org/10.1787/084244078600
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    Cited by:

    1. repec:wsi:jicepx:v:08:y:2017:i:01:n:s1793993317500028 is not listed on IDEAS
    2. Aida Caldera Sánchez & Alain de Serres & Naomitsu Yashiro, 2016. "Reforming in a difficult macroeconomic context: A review of the issues and recent literature," OECD Economics Department Working Papers 1297, OECD Publishing.
    3. Erixon, Lennart, 2011. "Under the influence of traumatic events, new ideas, economic experts and the ICT revolution - the economic policy and macroeconomic performance of Sweden in the 1990s and 2000s," Research Papers in Economics 2011:25, Stockholm University, Department of Economics.
    4. Edquist, Harald & Henrekson, Magnus, 2013. "Product Market Reforms and Incentives to Innovate in Sweden," Working Paper Series 986, Research Institute of Industrial Economics.

    More about this item

    Keywords

    Dividende de productivié; industrie de réseau; network industries; product market regulation; productivity dividend; regulatory reforms; réforme réglementaire;

    JEL classification:

    • D40 - Microeconomics - - Market Structure, Pricing, and Design - - - General
    • E20 - Macroeconomics and Monetary Economics - - Consumption, Saving, Production, Employment, and Investment - - - General (includes Measurement and Data)
    • E60 - Macroeconomics and Monetary Economics - - Macroeconomic Policy, Macroeconomic Aspects of Public Finance, and General Outlook - - - General
    • F40 - International Economics - - Macroeconomic Aspects of International Trade and Finance - - - General
    • H11 - Public Economics - - Structure and Scope of Government - - - Structure and Scope of Government
    • H40 - Public Economics - - Publicly Provided Goods - - - General
    • H60 - Public Economics - - National Budget, Deficit, and Debt - - - General
    • J20 - Labor and Demographic Economics - - Demand and Supply of Labor - - - General
    • L11 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Production, Pricing, and Market Structure; Size Distribution of Firms
    • L50 - Industrial Organization - - Regulation and Industrial Policy - - - General
    • L51 - Industrial Organization - - Regulation and Industrial Policy - - - Economics of Regulation
    • L53 - Industrial Organization - - Regulation and Industrial Policy - - - Enterprise Policy
    • O47 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - Empirical Studies of Economic Growth; Aggregate Productivity; Cross-Country Output Convergence

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