The Globe and Mail reports in its Tuesday edition that Canada's lagging productivity growth and innovation could get a meaningful boost by removing barriers to competition in "network sectors" such as telecommunications and broadcasting, the Organization for Economic Co-operation and Development recommends.
The Globe's David Parkinson writes that in the international economic advisory and research body's new report on Canada's economy, the OECD estimated increased competition in the domestic market could generate "about half a per cent per year" in additional productivity growth. It suggested the country rewrite its rules in regulated "network" industries such as telecommunications, broadcasting, energy and transportation, to increase competition.
"High barriers to competition in network sectors ... impede innovation and productivity growth," the report said. "Improving regulatory conditions, efficiency and/or cost competitiveness could yield more productive outcomes in these sectors, as well as in downstream industries." The OECD report projected that real gross domestic product will grow 1.7 per cent in 2016 and 2.2 per cent in 2017, as the economy continues to rotate away from the ailing energy sector.
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