The collapse of investment in the wake of the crisis has exacerbated a long-standing labour productivity slowdown attributable to low technical progress. Policy priorities to raise productivity involve speeding up the resolution of banks' non-performing loans, improving the selection process and execution of public infrastructure projects, raising public administration efficiency, and enhancing business dynamism and innovation.
Source: OECD June 2016 Economic Outlook database; OECD, Income Distribution and Poverty database; and OECD Secretariat calculations from EU-SILC – preliminary results.
Calligaris S. (2015), " Misallocation and Total Factor Productivity in Italy: Evidence from Firm-Level Data", Labour, Vol. 29(4), 367–393.
Giordano, R., S. Lanau, P. Tommasino and P. Topalova (2015), "Does Public Sector Inefficiency Constrain Firm Productivity: Evidence from Italian Provinces" IMF Working Paper WP/15/18.
Hassan, F. and G. Ottaviano (2013), Productivity in Italy: The Great Unlearning.
OECD (2012), "Italy: Reviving Growth and Productivity", OECD Better Policy Series.
Productivity - enhancing institutions