Jens Høj

Product Market Competition in the OECD Countries

Ce document est base sur 18 etudes economiques de l’OCDE menees entre 2003 et 2005. Il examine les differences entre pays dans les politiques de la concurrence ainsi que leur consequences sur les caracteristiques des marches de produits. Sur cette base, le document propose une synthese des recommandations de l’OCDE pour renforcer la concurrence dans differents domaines et secteurs economiques. Celles-ci comprennent: la suppression des barrieres commerciales et aux investissements directs etrangers encore en place; une meilleure dissuasion des strategies de cartel a l’aide de sanctions plus efficaces; un acces plus aise aux activites concurrentielles en assouplissant les regulations concernant l’amenagement du territoire (commerce de detail), la suppression de certains monopoles (vente de tabac et d’alcool), la limitation des prerogatives des associations professionnelles dans le domaine reglementaire ainsi que l’assouplissement des obligations de residence ou de nationalite (professions liberales) ; et un meilleur essor de la concurrence dans les industries de reseau par la separation des activites en situation de monopole des activites concurrentielles, la reduction du degre de controle public, notamment en distinguant clairement les fonctions de tutelle des fonctions de regulation sectorielle et en mettant en place les bonnes incitations a l’investissement en infrastructures.

Product Market Competition and Economic Performance in Finland

Following the deep recession in the early 1990s growth has been strong, but the scope for economic catch-up remains considerable and cross-country empirical evidence suggests that enhancing competition is an important means of achieving this. Structural reforms to strengthen competition in the early 1990s did boost growth and were also ahead of similar developments in the EU. However, indicators suggest that relatively weak competition remains in a number of sectors. Moreover, potential competition is reduced by a sparse population and relative long distances to large markets, which together with the prevalence of local monopolies and public ownership in many network industries, point to the need for greater vigilance to sustain and promote competition. Further reforms to promote product market competition should focus on fundamental changes in the regulatory approach as well as more incremental measures to intensify competition. The competition authority should concentrate ... Concurrence sur le marche des biens et performance economique en Finlande Apres la severe recession des annees 1990, la croissance economique a ete forte mais la convergence en termes de la productivite est encore loin d’etre complete et les comparaisons empiriques internationales suggerent qu’un renforcement de la concurrence pourrait resorber une part significative de ce retard. Certes, les reformes structurelles mises en œuvre au debut des annees 1990 pour renforcer la concurrence ont soutenu la croissance et ont meme souvent ete plus precoces qu’au sein de l’Union Europeenne. Neanmoins, divers indicateurs suggerent que le degre de concurrence reste insuffisant dans de nombreux secteurs. En outre, le degre potentiel de concurrence reste contenu en raison de l’eparpillement de la population et l’eloignement par rapport des longues distances d’acces aux grands marches, qui, combines a l’importance des monopoles locaux et de l’actionnariat de l’etat dans de nombreuses industries de reseaux, suggerent la necessite d’une vigilance renforcee pour ...

Encouraging Environmentally Sustainable Growth in Belgium

This document analyses aspects of environmental policy in Belgium. Some specific examples are drawn from policies on water in the different regions that make up the Belgian Federation (to whom much environmental policy is delegated), and transport and congestion policy in the Brussels region is discussed. The system of “ecotaxes” and some inconsistencies in the structure of taxation, from the environmental point of view - for example between petrol and diesel fuel - are also covered. An important theme is the institutional complexity involved in many aspects of environmental policy. Co-ordination is necessary between regional governments and the federal government, as well as with local governments, implementing policies which are often based on EU directives ... Ce document analyse certains aspects de la politique de l’environnement en Belgique. Quelques exemples sont tires de la politique concernant l’eau dans les differentes regions qui constituent la Belgique (auxquelles la responsabilite de la politique environnementale est deleguee), et la politique concernant les transports et les congestions dans la region de Bruxelles est discutee. Le document analyse egalement le systeme des ecotaxes et certaines incoherences dans le structure de la fiscalite du point de vue de l’environnement - par exemple entre l’essence et le gazole. Un theme qui ressort est celui de la complexite institutionnelle dans de nombreux aspects de la politique environnementale. La coordination est necessaire entre les gouvernements regionaux et le gouvernement federal, ainsi qu’avec les autorites locales, qui mettent en œuvre des politiques souvent fondees sur des directives de l’Union europeenne ...

Product Market Competition and Economic Performance in France

Over the past decade, French economic growth has been insufficient to bring down high and persistent unemployment. Available cross-country evidence suggests that enhancing competition is an important means to improve economic performance. France is catching up with best practice in competition policy reform. However, other policy considerations often hamper the emergence of effective competition. Relatively weak competitive pressures remain in a number of sectors, particularly in sheltered service industries. Restrictions on competition reduce productivity growth and hinder job creation in regulated sectors. Policy must focus on giving more weight to overall consumer welfare in the face of opposition from relatively small but vocal special interest groups. This paper discusses reforms that would increase competition by: i) strengthening institutions and better clarifying their responsibilities with respect to competition enforcement; ii) reinforcing the ability of sector regulators to improve non-discriminatory third-party access and other aspects of competition in the network industries; iii) abolishing overly prescriptive regulation in the retail sector; and iv) removing unnecessary protection in some professional services. This Working Paper relates to the 2005 OECD Economic Survey of France (www.oecd.org/eco/surveys/france).

Can the Financial Sector continue to be the Main Growth Engine in Luxembourg

The financial sector has emerged as the main economic engine over the past two decades. The comparative advantages of placing financial activities in Luxembourg have mostly been in terms of an adaptive legislative and regulatory framework and low taxation. As a result, Luxembourg is today one of the main international centres for investment funds. Besides the sector’s direct and indirect employment effects, the most important effect is the large tax revenue generating capacity of the sector, accounting directly for over 20% of aggregate tax revenues. On the other hand, these tax revenues are volatile as the sector is highly sensitive to developments in international financial markets. Indeed, past downturns in international financial markets have tended to lead to a sharp slowdown of growth in the economy as well as in revenues, pointing to potential large risks associated with the current turmoil in international financial markets. Besides these short-term considerations, a lower trend growth rate of the sector is likely over the medium term. The main activities of the sector are in middle and back offices dealing with financial administration which, with new IT technologies, will tend to be increasingly outsourced. At the same time, the sector is having problems in attracting highly specialised talent to enter higher value front office activities. Over the longer term, international competition will continue to exert pressures that may eventually erode Luxembourg’s position. The extent of the decline in the sector’s trend growth depends on the ability to maintain and expand the attractiveness of investing and working in Luxembourg. Achieving this will depend on being able to adjust tax, infrastructure, and housing policies to attract foreign talent while updating and increasing the transparency of financial sector regulation.

Product Market Competition and Economic Performance in Japan

Empirical work shows that competition is important for promoting economic growth. However, in Japan the promotion of competition has long been compromised by ministerial guidance and exemptions from the competition law. Thus, the level and growth of productivity have been low in many domestically oriented sectors and consumer welfare has suffered under high prices and the slow introduction of new goods and services. This misallocation of resources contributes to explaining why the Japanese economy had difficulty in coming out of the quasi-stagnation of the past decade. Recognising that gains from more pro-competition policies are substantial, the Japanese government has now made the promotion of competitive markets a cornerstone of its economic policy. Reforms to promote product market competition in Japan should inter alia focus on strengthening the legal framework by increasing fines to a deterrent level and introducing cartel destabilising measures, such as a leniency ... Concurrence sur les marches de produits et performance economique au Japon Des etudes empiriques montrent que la concurrence est importante pour promouvoir la croissance economique. Mais au Japon, la stimulation de la concurrence a longtemps ete compromise par des directives ministerielles et des exemptions au droit de la concurrence. Aussi, le niveau et le taux de croissance de la productivite ont ete bas dans de nombreux secteurs tournes vers le marche interieur, et le bien-etre des consommateurs a souffert de prix eleves et d’une diffusion trop lente des nouveaux biens et services. Cette mauvaise allocation des ressources contribue a expliquer pourquoi l’economie japonaise n’est pas parvenue a sortir de la quasi-stagnation de la derniere decennie. Conscient que des politiques plus propices au jeu de la concurrence peuvent s’averer tres benefiques, le gouvernement japonais a fait de la promotion des marches concurrentiels l’une des pieces maitresses de sa politique economique. Les reformes visant a stimuler la concurrence sur les marches de produits au ...

Enhancing the Benefits of Financial Liberalisation in Belgium

The Belgian financial landscape has been transformed over the past two decades and now consists of a relatively large, well-functioning and internationally integrated financial sector contributing directly and indirectly, through its intermediary function, to long-term economic growth. One of the financial system’s key characteristics is the concentration of activity among a small number of financial conglomerates that offer a combination of banking and insurance services. Although this mix of activities may contribute to financial stability, it has led to a widespread commercial practice of crossselling, possibly dampening competitive pressures. Competition may also be hindered by regulatory policies in the markets of mortgage loans and consumer credit; although these policies aim at protecting consumers against the risk of over-indebtedness, they risk having the unintended consequence of increasing entry costs for new providers, thus hindering competition and innovation and hurting consumer interests. Besides regulatory policy, tax policy has also been used to shape the development of the financial system. Tax credits are granted to influence investment and borrowing decisions, notably to stimulate home ownership, encourage saving and stimulate private pension accounts. International experience suggests that such tax expenditures, while influencing the allocation of saving, have no obvious impact on the overall level of saving. However they result in significant tax expenditure and necessitate higher tax rates elsewhere. Reforms recommended in this paper would help to make a well-functioning system perform even better. Renforcer les avantages de la liberalisation financiere en Belgique Le paysage financier belge s’est transforme au cours des deux dernieres decennies et se caracterise aujourd’hui par un secteur financier relativement important, fonctionnant bien et integre au niveau international, qui contribue directement et indirectement, par sa fonction d’intermediation, a la croissance economique a long terme. L’une des principales caracteristiques du systeme financier est la concentration de l’activite au sein d’un petit nombre de conglomerats financiers qui offrent simultanement des services bancaires et des services d’assurance. Bien que cette combinaison d’activites puisse contribuer a la stabilite financiere, elle a conduit a une pratique commerciale tres repandue, la vente croisee, qui peut attenuer les pressions concurrentielles. La concurrence est peut-etre aussi entravee par les dispositions reglementaires concernant les marches du credit hypothecaire et du credit a la consommation ; bien que ces dispositions aient pour objet de proteger les consommateurs contre le risque de surendettement, elles peuvent avoir pour consequence involontaire d’accroitre les couts d’entree pour les nouveaux prestataires, et de limiter ainsi la concurrence et l’innovation tout en portant atteinte aux interets des consommateurs. Outre la politique reglementaire, la politique fiscale a ete utilisee pour faconner le developpement du systeme financier. Des credits d’impot sont accordes pour influencer les decisions d’investissement et d’emprunt, en particulier afin de stimuler l’accession a la propriete du logement, encourager l’epargne et promouvoir la constitution de comptes retraite prives. L’experience d’autres pays donne a penser que ces depenses fiscales, si elles influent sur l’affectation de l’epargne, n’ont pas d’impact manifeste sur son niveau global. Or, elles se traduisent par d’importantes depenses fiscales et obligent a relever les taux d’imposition dans d’autres domaines. Les reformes recommandees dans le present article contribueraient a ameliorer encore le fonctionnement du systeme, qui est deja satisfaisant.