The Potential Impact of Pro-competitive Regulatory Reforms on Productivity and Growth in Canada

Gilbert Cette, Jimmy Lopez (), Giuseppe Nicoletti and Océane Vernerey

International Productivity Monitor, 2025, vol. 49, 3-40

Abstract: Using international data on anticompetitive regulations and productivity from 15 countries and a large number of industries over 1996-2021 (EUKLEMS & INTANProd; OECD PMR database), this article models how regulations in upstream non-manufacturing sectors (energy, transport, trade, professional services) affect downstream productivity. Reforms reducing regulation in these sectors transmit to the rest of the economy through input-output linkages. The study finds that if Canada adopted best-practice regulations internationally (especially in professional services and retail distribution), GDP per capita could rise 6.5-10 per cent in the long run. These very large potential gains highlight regulation as an important constraint on Canadian productivity.

Date: 2025
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Working Paper: The Potential Impact of Procompetitive Regulatory Reforms on Productivity and Growth in Canada (2025)
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