Productivity picked up sharply after a long stagnation, increasing scope for inclusive growth. Recent structural reforms addressing fragmentation of product and service markets, simplifying business creation, and reforms of labour and financial markets have gone in the right direction. Increased competition, skills and innovation and more efficient allocation of resources to more productive uses will also be needed to boost productivity growth.
- Reduce the number of professions requiring membership in a professional body.
- Improve competition in retail electricity and reduce entry barriers in rail, maritime transport, and motor fuels.
- Provide second-chance opportunities for those who have not completed secondary education.
- Strengthen active labour market policies, improve vocational training and allocate more funds to effective training schemes.
- Encourage greater scale and specialisation by universities and research organisations, and provide more career opportunities for highly qualified researchers.
- Partially reallocate funds from loans to R&D grants to projects and researchers based on performance and international peer review.
Source: OECD May 2017 Economic Outlook database.
Alonso-Borrego, C. (2010), “Firm Behavior, Market Deregulation and Productivity in Spain”, Bank of Spain Working Paper 1035.
Dolado, J., S. Ortigueira and R. Stuccchi, (2011), “Does dual employment protection affect TFP? Evidence from Spanish manufacturing firms”, IZA Discussion Paper 3832.
Fariñas, J.C., and S. Ruano (2004), “The dynamics of Productivity : A Decomposition Approach Using Distribution Functions”, Small Business Economics 22 (3-4): 237—251.
Hospido, L. and E. Moreno-Galbis (2015), "The Spanish Productivity Puzzle in the Great Recession", Bank of Spain Working Papers, no. 1501.
Mora Sanguinetti, J. S. and A. Fuentes (2012), “An Analysis of Productivity Performance in Spain Before and During the Crisis: Exploring the Role of Institutions”, OECD Economics Department Working Papers, No. 973, OECD Publishing.
García-Santana M., E. Moral-Benito, J. Pijoan-Mas and R. Ramis (2016), "Growing like Spain: 1995-2007", Documentos de Trabajo N.º 1609, Banco de España.
Productivity - enhancing institutions
There is no single institution dedicated to productivity in Spain. The Ministry of Economy and Competitiveness and the Bank of Spain, among others institutions, provide analysis on productivity issues.