OECD Economics Department Working Papers

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.

English, French

Strengthening competition in network sectors and the internal market in Canada

Canada’s productivity performance has lagged that of many other OECD countries, despite some improvement in recent years. One measure to enhance overall efficiency would be to strengthen competition on the domestic market to drive future multi-factor productivity improvements. The potential gains are large: about a half a percent per year over a fairly long horizon. This paper focuses on increasing competition in network sectors, including energy, telecommunication services and broadcasting, and transportation, which are key inputs to production in the broader economy. Improving regulatory conditions, efficiency and/or cost competitiveness could yield more productive outcomes in these sectors, as well as in downstream industries. Competition could also be increased by lowering barriers to interprovincial trade and the movement of labour, which act to fragment Canada’s already small domestic market. To this end, reforms of the Agreement on Internal Trade and measures to reduce sectoral barriers to trade are also discussed. This Working Paper relates to the 2016 OECD Economic Survey of Canada (www.oecd.org/eco/surveys/economic-survey-canada.htm)

English Also available in: French

Keywords: productivity, network industries, competition, integration, regulation
JEL: O43: Economic Development, Innovation, Technological Change, and Growth / Economic Growth and Aggregate Productivity / Institutions and Growth; L9: Industrial Organization / Industry Studies: Transportation and Utilities; L3: Industrial Organization / Nonprofit Organizations and Public Enterprise; Q18: Agricultural and Natural Resource Economics; Environmental and Ecological Economics / Agriculture / Agricultural Policy; Food Policy; J44: Labor and Demographic Economics / Particular Labor Markets / Professional Labor Markets; Occupational Licensing; L66: Industrial Organization / Industry Studies: Manufacturing / Food; Beverages; Cosmetics; Tobacco; Wine and Spirits; L5: Industrial Organization / Regulation and Industrial Policy; L1: Industrial Organization / Market Structure, Firm Strategy, and Market Performance
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