2021 – Business Environment: Competition, Markets and Taxation
with João Tovar Jalles and Joaquim Oliveira Martins
in Alexandre, F. (ed), “From Made in to Created in: a new paradigm for the portuguese economy”, pp.79-116, Fundação Francisco Manuel dos Santos.
Abstract: To alter the paradigm from made in to created in Portugal, structural changes are needed. Portugal has a well-known structural disadvantage to compete internationally. To solve this problem, one needs to create the right conditions and align the incentives to convert domestic production towards the tradable sector, particularly focusing on differentiated goods, while not forgetting the large non-tradable sector, which is often over-regulated and lacks a sound competitive environment. Promoting market deregulation, improving the business environment and enhancing the degree of efficiency of the legal system are important strategic avenues going forward. The often-overlooked quality of the urban policies and regional governance necessary to create economies of agglomeration should also not be forgotten. At the same time, Portugal needs to make its tax system internationally competitive. However, doing so in a fiscally neutral way requires an improvement in the spending efficiency of the public sector.
You can access the book here.