Productivity and Jobs in a Globalised World
(How) Can All Regions Benefit?
This report looks at how regional policies can support productivity growth and jobs. While there has been a remarkable decline in inequality in OECD countries, inequality among regions within certain countries has increased over the same time period. Regions that narrowed productivity gaps tended to benefit from economically vibrant tradable sectors and integration with well-functioning cities. This report considers in detail the role of the tradable sector as a driver of productivity growth and its relationship with employment. It addresses the possible risks of a growing tradable sector and how diversification is central to strengthening regional economic resilience. It considers how regions integrate global value chains and highlights the role of regional and policy links in fostering productivity growth and job creation. It asks what policies can help better anticipate or cushion shocks from trade in specific regions and, more generally, what strategies and framework conditions are conducive for regional productivity and employment growth.
Thinking global, developing local: Tradable sectors, cities and their role for catching up
The key challenge for policy is how to sustain aggregate growth while promoting catching up of lagging regions and job creation at the same time. This is a daunting challenge as there are some clear trade‑offs outlined in Chapter 1. This chapter considers two important characteristics of regions that support catching up in terms of labour productivity.