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.

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Too little Destruction too little Creation

A Schumpeterian Diagnosis of Barriers to Sustained Growth in Ukraine

This paper examines problems of entry, exit and competition in Ukrainian product markets. It finds that Ukraine still has too little of all three, and that exit mechanisms, in particular, function poorly. Since impediments to entry and exit are largely the product of excessive and ill administered regulation, the paper also provides a systematic assessment of product-market regulation in Ukraine, using indicators developed by the OECD Economics Department. Finally, the paper presents the main findings of two empirical studies concerned with the potentially large benefits of opening up markets, via both increased competition and further privatisation, for productivity growth in Ukraine. This paper relates to the 2007 Economic Survey of Ukraine (www.oecd.org/eco/studies/ukraine).


Keywords: product market regulation, entry, Ukraine, creative destruction, privatisation, exit, competition, restructuring
JEL: D43: Microeconomics / Market Structure, Pricing, and Design / Market Structure, Pricing, and Design: Oligopoly and Other Forms of Market Imperfection; H11: Public Economics / Structure and Scope of Government / Structure, Scope, and Performance of Government; L5: Industrial Organization / Regulation and Industrial Policy; L1: Industrial Organization / Market Structure, Firm Strategy, and Market Performance; O12: Economic Development, Innovation, Technological Change, and Growth / Economic Development / Microeconomic Analyses of Economic Development; D24: Microeconomics / Production and Organizations / Production; Cost; Capital; Capital, Total Factor, and Multifactor Productivity; Capacity; P23: Economic Systems / Socialist Systems and Transitional Economies / Socialist Systems and Transitional Economies: Factor and Product Markets; Industry Studies; Population; L9: Industrial Organization / Industry Studies: Transportation and Utilities
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