世界发展银行-Barriers-to-Competition-in-Product-Market-Regulation---New-Insights-on-Emerging-Market-and-Developing-Economies_36页_4mb

Summary of Document: Barriers to Competition in Product Market Regulation

Core Content

This document examines the differences in product market regulations between advanced economies (AEs) and emerging market and developing economies (EMDEs), focusing on how these regulations affect competition, productivity, and economic growth. It highlights that while AEs have generally implemented more consistent and less restrictive regulations, EMDEs show greater variation and more restrictive policies. The analysis uses standardized Product Market Regulation (PMR) indicators developed by the OECD and the World Bank Group (WBG), covering 33 AEs and 38 EMDEs.

Main Viewpoints

• Productivity and Economic Growth: Product market regulations play a crucial role in fostering productivity and supporting economic transformation by enabling competition, which drives innovation and resource efficiency.

• Restrictiveness of Regulations: EMDEs tend to have more restrictive and varied product market regulations compared to AEs, which can hinder productivity and limit job creation.

• Policy Convergence and Divergence: AEs show greater policy convergence in economywide regulations, while EMDEs have more divergence, particularly in sector-specific policies. The presence of state-owned enterprises (SOEs) and the extent of government intervention in markets are more varied in EMDEs.

• Sectoral Differences: Certain sectors, such as retail and professional services, exhibit significant differences in regulation across AEs and EMDEs. AEs generally have more liberal and consistent rules in areas like shop opening hours and price controls, while EMDEs have more rigid and fragmented regulations.

• Impact of Regulatory Barriers: Regulatory barriers in EMDEs, such as high entry costs, price controls, and cumbersome licensing, can limit competition and stifle productivity. These barriers are often more pronounced in key input sectors like energy, transport, and communications, which affect downstream industries.

• Potential for Reform: Removing regulatory barriers to competition in EMDEs could lead to significant productivity improvements and economic growth. Examples from AEs show that such reforms can result in GDP gains, and similar outcomes are expected in EMDEs.

Key Information

PMR Database Overview

• The PMR database includes 71 countries: 33 AEs and 38 EMDEs.
• It measures the restrictiveness of product market regulations across economywide and sectoral indicators.
• Data is collected in five-year intervals, with the most recent data covering 2013–2017.
• The database is used to identify areas for reform and to understand the link between product market regulation and economic development.

Economywide Regulation

• Convergence: AEs have more consistent and less restrictive economywide regulations, especially in areas like trade and investment, and entrepreneurship.
• Divergence in EMDEs: EMDEs show more variation in economywide policies, with higher barriers to competition.
• State Control: AEs tend to have less direct government control over enterprises, while EMDEs often have more state involvement in key sectors.

Sectoral Regulation

• Network Sectors: In sectors like telecommunications and road transport, AEs have more harmonized regulations, while EMDEs show more variability.
• Professional Services: Regulations in professional services such as legal, accounting, architecture, and engineering are highly variable across both AEs and EMDEs.
• Retail Trade: AEs generally have more flexible retail regulations, including less price control and more open shop hours, while EMDEs have more rigid rules.

Policy Implications

• Reforms in EMDEs: There is significant potential for reform in EMDEs, as removing barriers to competition could lead to productivity gains and better economic outcomes.
• Learning from AEs: EMDEs can learn from the experiences of AEs in implementing pro-competitive policies, as some reforms that were once controversial have become standard practice.
• Need for Further Research: More research is needed to fully understand the relationship between product market regulation and productivity in EMDEs, as current empirical literature is more focused on AEs.

Conclusion

The document concludes that product market regulation is a critical factor in economic development and job creation, especially in EMDEs. While AEs have shown progress in reducing regulatory barriers, EMDEs still have significant room for reform. The PMR database provides a valuable tool for identifying these barriers and guiding policy decisions. The World Bank Group will continue to support this effort by expanding the PMR database to include more EMDEs.