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An International perspective on the productivity paradox – by Alain ...

An International perspective on the productivity paradox – by Alain ...

Observed GDP per

Observed GDP per capitagap in 2009 (in %)70Based on comparative policy settings coveringmany areas NZL income should be higherObserved gap in GDP/capita relative to OECD average versus the gappredicted from various structural policies, 2009LUX5030USA10-10FRAGRCNORBEL SWEFINAUTESPIRLCHEISLDEUJPNDNKNLDCANITAGBRKORNZL-30PRT-50-40 -30 -20 -10 0 10 20 30Overall GDP per capita gap predicted by the framework (in %)Note: The predicted GDP per capita gap is computed on the basis of estimated impact of various structural policies (ex: productmarket regulation, labour protection legislation) from past OECD studies.Source: Barnes, S. et al. (2011), “The GDP Impact of Reform: A Simple Simulation Framework”, OECD Economics DepartmentWorking Papers, No. 834, OECD Publishing. http://dx.doi.org/10.1787/5kgk9qjnhkmt-en4

Outline of presentation• Nature of the productivity paradox• The direct contribution of physical and human capital• The role of knowledge-based capital and its growing importance as asource of productivity• The role of geographic distance and its impact through internationaltrade• Summing-up5

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