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Measuring the macroeconomic resilience of industrial sectors in the EU and assessing the role of product market regulations

Author(s): Fabio Canova, Leonor Coutinho, Zenon Kontolemis, Universitat Pompeu Fabra and Europrism Research

Measuring the macroeconomic resilience of industrial sectors in the EU and assessing the role of product market regulationspdf(2 MB) Choose translations of the previous link 

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We study sectoral business cycles for industry across EU countries, looking in particular how these are affected by common exogenous shocks (this is our definition of resilience), and investigate whether product market regulations play a role in minimising such fluctuations. The analysis is conducted for the period 1980-2008, and separately for the 2008-09 downturn. We find robust evidence that product market regulations help in explaining differences in the adjustment capacity of sectors. In addition we identify which sectors are consistently less resilient across the EU and provide information about how these translate to country differences. A number of policy recommendations emerge from the analysis which can be useful when designing structural reform strategies at the EU level.


(European Economy. Occasional Papers 112. July 2012. Brussels. Paper and internet. 36pp. Tab. Ann. Bibliogr. )

KC-AH-12-112-EN-N (online)
ISBN 978-92-79-22906-6 (online)
doi: 10.2765/23513 (online)

JEL classification: L50, L60, E32

Occasional Papers are written by the staff of the Directorate-General for Economic and Financial Affairs, or by experts working in association with them. The Papers are intended to increase awareness of the technical work being done by staff and cover a wide spectrum of subjects. Views expressed in unofficial documents do not necessarily reflect the official views of the European Commission.

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