OECD Economics Department Working Papers

ISSN: 
1815-1973 (online)
http://dx.doi.org/10.1787/18151973
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Working papers from the Economics Department of the OECD that cover the full range of the Department’s work including the economic situation, policy analysis and projections; fiscal policy, public expenditure and taxation; and structural issues including ageing, growth and productivity, migration, environment, human capital, housing, trade and investment, labour markets, regulatory reform, competition, health, and other issues.

The views expressed in these papers are those of the author(s) and do not necessarily reflect those of the OECD or of the governments of its member countries.

 

Scaling New Heights

Achievements and Future Challenges for Productivity Convergence in Lithuania You or your institution have access to this content

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Author(s):
Ben Westmore1
Author Affiliations
  • 1: OECD, France

26 July 2016
Bibliographic information
No.:
1307
Pages:
41
http://dx.doi.org/10.1787/5jlv2zcn3s8r-en

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GDP per capita in Lithuania rose from one third to two thirds of the OECD average level between 1995 and 2014, despite internal and external crises. Productivity catch-up was critical to this process, although the level of labour productivity also remains around one-third below the OECD average. Further productivity gains will partly rely on improvements in resource allocation. In particular, the Lithuanian government should promote better governance of state-owned enterprises, more effective bankruptcy procedures and new forms of business financing. However, convergence will also require policy settings that encourage advances in within-firm productivity growth. Improvements to the quality of education at all levels and increasing the role of workplace training will be important. So too will be further measures that support the innovation capacity of the business sector, including innovation policies that promote the absorptive capacity of firms and do not favour incumbents at the expense of young businesses. This Working Paper relates to the 2016 OECD Economic Survey of Lithuania (www.oecd.org/eco/surveys/economic-survey-lithuania.htm)
Keywords:
resource allocation, innovation, productivity convergence, knowledge transfer, product market regulation, education
JEL Classification:
  • F43: International Economics / Macroeconomic Aspects of International Trade and Finance / Economic Growth of Open Economies
  • O10: Economic Development, Innovation, Technological Change, and Growth / Economic Development / General
  • O24: Economic Development, Innovation, Technological Change, and Growth / Development Planning and Policy / Trade Policy ; Factor Movement Policy ; Foreign Exchange Policy
  • O33: Economic Development, Innovation, Technological Change, and Growth / Innovation ; Research and Development ; Technological Change ; Intellectual Property Rights / Technological Change: Choices and Consequences ; Diffusion Processes
  • O38: Economic Development, Innovation, Technological Change, and Growth / Innovation ; Research and Development ; Technological Change ; Intellectual Property Rights / Government 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
  • O52: Economic Development, Innovation, Technological Change, and Growth / Economywide Country Studies / Europe
 
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