Policy reforms aimed at boosting long-run growth often have side effects – positive or negative – on an economy’s vulnerability to shocks and their propagation. Macroeconomic shocks as severe and protracted as those since 2007 warrant a reconsideration of the role growth-promoting policies...

SMEs are key to strengthening productivity, delivering more inclusive growth and adapting to the major transformations of our time. SMEs that grow have a considerable positive impact on employment creation, innovation, productivity growth and competitiveness. While the population of SMEs is very...

This paper develops an analytical framework to identify the policies relevant for firm exit and the channels through which they shape aggregate productivity growth. A range of potentially relevant policies are identified, spanning insolvency regimes, regulations affecting product, labour and...

This book discusses the impact of taxation on economic growth, employment, investment, consumption and the environment. The public finance literature commonly distinguishes between three major functions of taxation: the traditional function of raising revenue to finance government expenditure;...

Indonesia’s growth performance is improving, following a slow recovery from the 1997-98 financial crisis. Investment is picking up, despite considerable business-climate obstacles to entrepreneurship. Unemployment remains high, and labour informality is pervasive. Fiscal policy has been...

We calibrate a two-sector span-of-control model and show that size-dependent labor regulations generate the observed employment distribution across manufacturing establishments in India. We find that such regulations in manufacturing reduce productivity in agriculture and impede the process of...

Der Artikel behandelt die Gründe für Deutschlands Wachstumsschwäche und beschäftigt sich mit notwendigen Reformen. Eine Belebung des Wirtschaftswachstums kann in erster Linie durch eine Erhöhung der Beschäftigung erreicht werden. Ein weiterer Schritt, um Deutschland wieder...