Productivity could be boosted by lowering regulatory burdens and by implementing the privatisation programme. Lowering the high tax wedge on labour income could boost employment, especially of the high skilled.

  • Continue privatising state-owned enterprises.
  • Introduce the ‘silence is consent’ rule for issuing licences required to open up a business and make obtaining construction permits and registering property faster. Reduce entry barriers in professional services.
  • Implement the government's unified innovation policy and boost collaborative links between major stakeholders of innovation policy.
  • Reform the education system so that it encourages creativity and entrepreneurship drive. Enhance the autonomy, leadership and accountability of universities and public research organisations.
  • Reduce top tax rates on labour income and increase recurrent taxes on real estate.

Productivity - Slovenia

Source: OECD June 2016 Economic Outlook database; OECD, Income Distribution and Poverty database; and OECD Secretariat calculations from EU-SILC – preliminary results.


Key publications

Bijsterbosch, M. and M. Kolasa (2009), “FDI and Productivity Convergence in Central and Eastern Europe: An Industry-Level Investigation”, Working Paper Series, No. 992, European Central Bank, Frankfurt am Main.

Damijan, J.P., M. Rojec, B. Majcen and M. Knell (2013), “Impact of firm heterogeneity on direct and spillover effects of FDI: Micro-evidence from ten transition countries”Journal of Comparative Economics, Vol 41 (3), Pages 895-922.

Iradian, G. (2007), “Rapid Growth in Transition Economies: Panel Regression Approach”, IMF Working Paper, No. 07/170, International Monetary Fund. 

Melitz, M., and Polanec, S. (2013), “Dynamic Olley-Pakes Productivity Decomposition with Entry and Exit”, February 4, 2013.

Vodopivec, M., Cede, U. (2013), “Productivity, Unit Labor Costs and Leverage in Slovenia: A Descriptive Analysis of Longitudinal Firm-Level Data”, Prikazi in Analize, Bank of Slovenia, July 2013. 

Molnar, M. (2010), “Measuring Competition in Slovenian Industries – Estimation of Mark-ups”, OECD Economics Department Working Paper No. 787. 

OECD (2012), Annual report on competition policy developments in Slovenia.

Sila, U., Jemec, N., and Morgavi, H. (2015), Raising competitiveness and long-term growth of the Slovenian economy, OECD Economics Department Working Paper, No. 1241. 


 Institutions icon Productivity - enhancing institutions

There is no single institution in Slovenia dedicated to productivity issues. The Ministry of Finance is the main point of contact regarding this issues. The MoF liaises further with the Government Office for Development and European Cohesion Policy and the Ministry of Economic Development and Technology that are responsible for economic and development policy. 


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