Barriers to Competition in Croatia: The Role of Government Regulation

93 Pages Posted: 20 Apr 2016

See all articles by Donato De Rosa

Donato De Rosa

World Bank

Sanja Madzarevic-Sujster

World Bank

Ana-Maria Boromisa

Institute for International Relations (IMO) Zagreb

Velimir Sonje

Independent

Date Written: October 1, 2009

Abstract

This paper examines product market policies in Croatia by benchmarking them to OECD countries and highlighting how policies that are more conducive to competition would stimulate a more efficient allocation of resources and, in consequence, facilitate convergence to higher income levels. OECD indicators of overall regulation in product markets indicate that Croatias policies in 2007 were generally more restrictive of competition than were the policies in OECD countries. This is especially true for policies concerned with the degree of state control of the economy and with barriers to entrepreneurship. Regulatory obstacles to trade and foreign direct investment, by contrast, are in line with those of pre-accession European Union countries (Czech Republic, Hungary, Slovak Republic, and Poland in 2003, as well as Bulgaria and Romania in 2006), albeit well above the OECD average. Regulation of post, electricity, gas, telecoms, air, rail, and road transport, as estimated by the OECD energy transport and communication sectors indicator, is also less liberal than in the OECD, highlighting the positive knock-on effects for the rest of the economy that could derive from further liberalization of network industries.

Keywords: Transport Economics Policy & Planning, Public Sector Regulation, Markets and Market Access, Regulatory Regimes, Emerging Markets

Suggested Citation

De Rosa, Donato and Madzarevic-Sujster, Sanja and Boromisa, Ana-Maria and Sonje, Velimir, Barriers to Competition in Croatia: The Role of Government Regulation (October 1, 2009). World Bank Policy Research Working Paper No. 5100, Available at SSRN: https://ssrn.com/abstract=1498974

Donato De Rosa (Contact Author)

World Bank ( email )

1818 H Street, NW
Washington, DC 20433
United States

Sanja Madzarevic-Sujster

World Bank ( email )

1818 H Street, NW
Washington, DC 20433
United States

Ana-Maria Boromisa

Institute for International Relations (IMO) Zagreb

Ul. Lj. F. Vukotinovica 2, P.O. Box 303
Zagreb, Zagreb 10000
Croatia

Velimir Sonje

Independent

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