Productivity Performances and Policies: Lessons from OECD Countries

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Abstract

This article examines cross-country differences in productivity performance across OECD countries, analyzing why some countries have avoided or recovered from the post-2004 slowdown more successfully than others. Using a panel framework covering 35+ OECD countries, it investigates the role of policy fundamentals (product market regulation, R&D support, education systems, labour market flexibility) in explaining divergent productivity trajectories. The analysis finds considerable heterogeneity in both the timing and severity of slowdowns and identifies policy lessons from high-performing OECD countries.

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