Gains from Services Sector Deregulation

Abstract

Despite recent reforms, the services sector remains more regulated in France than in most OECD countries. This paper reviews evidence of the potential gains from a deregulation of the services sector. First, it provides evidence that past regulatory reforms had a positive impact on the productivity of the deregulated sectors. Second, it discusses the impact of a deregulation of the services sector for the whole economy. Literature suggests that, because services are an important and growing input for other sectors, this impact would be large for France leading to substantial macroeconomic gains in terms of productivity and export growth.

Keywords: Services, Productivity, Deregulation

JEL Classification: L8, O4