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Identifying Priority Service Sectors for Reforms in France

Author

Listed:
  • Magdalena Kizior
  • Dominique Simonis
  • Edouard Turkisch
  • Irene Vlachaki

Abstract

Given their high economic importance, their high labour intensity and their increasing contribution to manufacturing exports, services in France have a strong potential to create jobs and enhance productivity and contribute to overall competitiveness. Despite recent reform efforts in some service sectors, a number of issues continue to hamper activity in those sectors that need to be addressed. In order to help prioritise reforms in services in France, this paper identifies sectors that are both economically important and score relatively poorly with respect to three dimensions of market performance (competition, openness, innovation). This screening exercise points to a set of sectors with a relatively weak performance when compared to other service sectors in France. A cross-country comparison with the performance of the identified sectors in the other large euro area economies (Germany, Spain, Italy) and the UK is then provided. The results show that, despite a relatively good market performance overall, several service sectors of major economic importance in France are characterised by low competition. This is notably the case for a number of business services (architectural and engineering activities, administrative and support services), as well as for the sectors of retail trade, accommodation and food services, and health. This analysis provides useful insight about the challenges in some sectors, which would be candidates for reforms in priority, and invites further analysis on the causes of their weak performance.

Suggested Citation

  • Magdalena Kizior & Dominique Simonis & Edouard Turkisch & Irene Vlachaki, 2018. "Identifying Priority Service Sectors for Reforms in France," European Economy - Economic Briefs 035, Directorate General Economic and Financial Affairs (DG ECFIN), European Commission.
    • Handle: RePEc:euf:ecobri:035
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    References listed on IDEAS

    as
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    More about this item

    Keywords

    France; services; market performance; structural reforms; Kizior; Simonis; Turkisch; Vlachaki.;
    All these keywords.

    JEL classification:

    • L10 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - General
    • L80 - Industrial Organization - - Industry Studies: Services - - - General

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