Product Market Regulation in Romania : A Comparison with OECD Countries

Abstract

Less restrictive product market policies
 are crucial in promoting convergence to higher levels of GDP
 per capita. This paper benchmarks product market policies in
 Romania to those of OECD countries by estimating OECD
 indicators of Product Market Regulation (PMR). The PMR
 indicators allow a comprehensive mapping of policies
 affecting competition in product markets. Comparison with
 OECD countries reveals that Romania's product market
 policies are less restrictive of competition than most
 direct comparators from the region and not far from the OECD
 average. Nonetheless, this achievement should be interpreted
 in light of the fact that PMR approach measures officially
 adopted policies. It does not capture implementation and
 enforcement, the area where future reform efforts should be
 directed if less restrictive policies are to have an
 effective impact on long-term growth prospects.