Productivity and long term growth
Economic Policy Reforms: Going for Growth
In 2017, the pace of reforms has remained similar to the relatively slow pace observed in the last two years and below the one observed in the direct aftermath of the crisis. Nevertheless, some bold actions have been taken – over one third of actions implemented in 2017 can be viewed as “major steps”.
Zombie firms and weak productivity
Among the factors of the productivity slowdown experienced over the past two decades is the increasing survival of firms that would typically exit in a competitive market – i.e. “zombie” firms. Reviving productivity growth will partly depend on the policies that effectively facilitate the exit or restructuring of weak firms, while simultaneously coping with any social costs that arise from a heightened churning of firms and jobs.
The Future of Productivity
The slowdown in productivity over the past decade has added to concerns about the long-term economic outlook. But new OECD research shows that policy reforms can revive the diffusion of innovation and make better use of human talent to clear the path for higher and more inclusive productivity growth.
>> The Future of Productivity