Product Market Regulation and Competitiveness: Toward a National Competition and Competitiveness Policy for Greece1

Abstract

This chapter examines the competitiveness of product markets in Greece. One of the main determinants of competitiveness is the quality of the set of rules and regulations that govern the operation of markets. These should promote competition, investment and entrepreneurship. Heavy and low-quality regulation is generally associated with greater inefficiency and poor economic outcomes. This chapter describes competitiveness in the Greek economy and its evolution over time using various internationally comparable indicators that cover many dimensions of competitiveness. It demonstrates that product markets in Greece are among the most heavily and misregulated markets of advanced countries, though the reforms that took place during 2011–2014 had a positive impact. The chapter investigates in greater depth the misregulation of product markets, identifying possible causes and illustrating through case studies. It makes the case for a National Competition and Competitiveness Policy plan to improve the regulatory institutions and reduce regulatory burden. Finally, it looks at the successes and failures of regulatory reform history in two important markets: energy and telecommunications.