Productivity and Inclusive Growth

Aggregate productivity growth has slowed in recent years in many industrialised countries. However, this development is not due to a slow-down at the global technological frontier, but rather because productivity gains behind the frontier have weakened. The study outlines the mechanisms behind this unequal productivity development and develops an analytical framework in which policy tools can be assessed for their impact on growth and inclusion. The focus of the study is on the policy areas of competition and regulatory policy, public investment and investment promotion, and innovation policy.