Will risks-derail-the-modest-recovery-oecd-interim-economic-outlook-march-2017OECD, Economics Department
Global GDP growth is projected to pick up modestly to around 3½ per cent in 2018, from just under 3% in 2016, boosted by fiscal initiatives in the major economies. The forecast is broadly unchanged since November 2016. Confidence has improved, but consumption, investment, trade and productivity are far from strong, with growth slow by past norms and higher inequality.
On October 14, Amy Liu presented at the Annual Economic Summit hosted by Greater Portland Inc. As Portland launches a new Blueprint for Regional Economic Growth, Amy Liu unveiled how metros can adopt a new model of economic development that helps build globally competitive and inclusive regional economies.
Trust and Public Policy: How Better Governance Can Help Rebuild Public Trust ...OECD Governance
Highlights brochure from the OECD publication "Trust and Public Policy: How Better Governance Can Help Rebuild Public Trust", which examines the influence of trust in policy making and explores the steps governments can take to strengthen public trust. oe.cd/trust-and-public-policy
Italy is recovering after a deep and long
recession. Structural reforms, accommodative
monetary and fiscal conditions, and low
commodity prices have helped the economy to turn
the corner.
This presentation provides key findings from the 2017 edition of the OECD Sovereign Borrowing Outlook. This includes gross borrowing requirements, net borrowing requirements, central government marketable debt, funding strategies and instruments and distribution channels.
Find out more information at http://www.oecd.org/finance/oecdsovereignborrowingoutlook.htm
While growth has picked up, more needs to be done for Japan to overcome two key challenges – a record high government debt ratio and an accelerating decline in its working-age
population.
OECD Compendium of Productivity indicators 2019: Key findings
This report presents a comprehensive overview of recent and longer-term trends in productivity levels and growth in OECD countries, accession countries, key partners and some G20 countries. An introductory chapter features an analysis of latest developments in productivity, employment and wages.
This presentation by Müge Adalet McGowan, Senior Economist, Economics Department, OECD, was made during the discussion “Barriers to exit” held at the 132nd meeting of the OECD Competition Committee on 4 December 2019. More papers and presentations on the topic can be found at oe.cd/bte.
Will risks-derail-the-modest-recovery-oecd-interim-economic-outlook-march-2017OECD, Economics Department
Global GDP growth is projected to pick up modestly to around 3½ per cent in 2018, from just under 3% in 2016, boosted by fiscal initiatives in the major economies. The forecast is broadly unchanged since November 2016. Confidence has improved, but consumption, investment, trade and productivity are far from strong, with growth slow by past norms and higher inequality.
On October 14, Amy Liu presented at the Annual Economic Summit hosted by Greater Portland Inc. As Portland launches a new Blueprint for Regional Economic Growth, Amy Liu unveiled how metros can adopt a new model of economic development that helps build globally competitive and inclusive regional economies.
Trust and Public Policy: How Better Governance Can Help Rebuild Public Trust ...OECD Governance
Highlights brochure from the OECD publication "Trust and Public Policy: How Better Governance Can Help Rebuild Public Trust", which examines the influence of trust in policy making and explores the steps governments can take to strengthen public trust. oe.cd/trust-and-public-policy
Italy is recovering after a deep and long
recession. Structural reforms, accommodative
monetary and fiscal conditions, and low
commodity prices have helped the economy to turn
the corner.
This presentation provides key findings from the 2017 edition of the OECD Sovereign Borrowing Outlook. This includes gross borrowing requirements, net borrowing requirements, central government marketable debt, funding strategies and instruments and distribution channels.
Find out more information at http://www.oecd.org/finance/oecdsovereignborrowingoutlook.htm
While growth has picked up, more needs to be done for Japan to overcome two key challenges – a record high government debt ratio and an accelerating decline in its working-age
population.
OECD Compendium of Productivity indicators 2019: Key findings
This report presents a comprehensive overview of recent and longer-term trends in productivity levels and growth in OECD countries, accession countries, key partners and some G20 countries. An introductory chapter features an analysis of latest developments in productivity, employment and wages.
This presentation by Müge Adalet McGowan, Senior Economist, Economics Department, OECD, was made during the discussion “Barriers to exit” held at the 132nd meeting of the OECD Competition Committee on 4 December 2019. More papers and presentations on the topic can be found at oe.cd/bte.
Presentation by Robert Shackleton, an analyst in CBO’s Macroeconomic Analysis Division, to the NABE Foundation’s 18th Annual Economic Measurement Seminar.
CBO regularly publishes economic projections that are consistent with current law—providing a basis for its estimates of federal revenues, outlays, deficits, and debt. A key element in CBO’s projections is its forecast of potential (maximum sustainable) output, which is based mainly on estimates of the potential labor force, the flow of services from the capital stock, and potential total factor productivity in the nonfarm business sector.
This presentation describes CBO’s most recent 10-year potential output projections. It also discusses possible underlying causes for the slowdown of growth in total factor productivity.
Presentation by Robert Shackleton, an analyst in CBO’s Macroeconomic Analysis Division, at the NABE Foundation’s 15th Annual Economic Measurement Seminar.
The Future of Productivity_Dan Andrews_Chiara Criscuolo_Productivity Summit_6...Structuralpolicyanalysis
"The Future of Productivity" by Dan Andrews and Chiara Criscuolo, Global Dialogue on the Future of Productivity: Towards an OECD Productivity Network, 6-7 July 2015, Mexico.
Productivity Summit_6-7 July 2015_Mexico
"...as long as the music is playing, you've got to get up and dance. We're still dancing." /Financial Times in July 2007: Charles Prince, Citigroup (former) chief executive/
Presentation by Robert Shackleton, an analyst in CBO’s Macroeconomic Analysis Division, at the NABE Foundation 17th Annual Economic Measurement Seminar.
As current growth rates reach a new low, competition for the future is on the...SimCorp
As growth rates came to a standstill in 2015, we took stock of expectations for the future. Surveying firms worldwide, we discovered them to be optimistic about long-term prospects, and found the pursuit of future profits gathering pace.
CBO regularly publishes economic projections that are consistent with current law—providing a basis for its estimates of federal revenues, outlays, deficits, and debt. A key element in CBO’s projections is its forecast of potential (maximum sustainable) output, which is based mainly on estimates of the potential labor force, the flow of services from the capital stock, and potential total factor productivity in the nonfarm business sector.
This presentation describes CBO’s most recent 10-year projections of potential output. It also discusses possible underlying causes for the slowdown of growth in total factor productivity.
www.pwc.comhrsA look at the key workforce trends from a.docxericbrooks84875
www.pwc.com/hrs
A look at the key workforce
trends from around
the world using data
from PwC’s Saratoga
benchmarking database.
Key trends in
human capital 2012
A global perspective
2 Key trends in human capital 2012. A global perspective
About PwC Saratoga
PwC Saratoga is the recognised leader in the
measurement and benchmarking of human capital in
organisations, HR and finance function performance
and transformation. Our specialists help clients to
develop predictive analytics capability by identifying
connections between HR, people, functional and
organisational performance, using a range of
quantitative and qualitative tools. This is supported
by a global repository of metrics and qualitative best
practice information from more
than 2,400 organisations.
3Key trends in human capital 2012. A global perspective
Introduction 4
Global trends in human capital 6
A multi-speed global economy 8
Productivity gaps widen 12
A rocky road for rookies 16
Survivors disengaged 20
HR rising to the analytics challenge 25
Priorities for business 32
In conclusion 34
Behind the numbers 36
Contacts 37
Related PwC publications 38
Contents
4 Key trends in human capital 2012. A global perspective
Introduction
Welcome to the latest in PwC’s detailed studies of
Global Trends in Human Capital. In this fifth edition we
look more closely at how organisations and the global
workforce have been changed by the financial crisis
and economic downturn.
5
Our 2010 Global Trends paper was written
at a time of considerable upheaval, with
many organisations cutting back sharply
on costs and headcount as the recession
took hold. Two years on, business leaders
are more confident about the prospects
for growth, in spite of continued economic
turmoil. While competition is intense,
many organisations are emerging leaner
and more focused. The mantra is to
maximise return on investment (ROI)
in every area of the business, especially
human capital.
It’s all about talent management
In this quest for growth, talent
management remains a primary focus
area for business leaders. According to
our 15th Annual Global CEO Survey, 78%
of CEOs plan to make changes to talent
strategy in response to the global business
environment. There is a clear need for
professional skills and effective leadership
to operate in challenging markets, while
emerging markets require the talent to
deliver continued growth. But only 30%
of CEOs said they were confident that they
would have the talent they needed to grow
their organisation in the near future, and
31% said that talent constraints had already
hampered innovation at their organisation.
In such an environment, knowledge and
insight – in the form of human capital data
– is power. Human capital measurement
and analytics has progressed far in recent
years, evolving from the collection and
redistribution of basic workforce data
through HR systems to a more thoughtful
and .
Similar to Confronting the zombies: policies for productivity revival (20)
If you are looking for a pi coin investor. Then look no further because I have the right one he is a pi vendor (he buy and resell to whales in China). I met him on a crypto conference and ever since I and my friends have sold more than 10k pi coins to him And he bought all and still want more. I will drop his telegram handle below just send him a message.
@Pi_vendor_247
how to sell pi coins on Bitmart crypto exchangeDOT TECH
Yes. Pi network coins can be exchanged but not on bitmart exchange. Because pi network is still in the enclosed mainnet. The only way pioneers are able to trade pi coins is by reselling the pi coins to pi verified merchants.
A verified merchant is someone who buys pi network coins and resell it to exchanges looking forward to hold till mainnet launch.
I will leave the telegram contact of my personal pi merchant to trade with.
@Pi_vendor_247
Financial Assets: Debit vs Equity Securities.pptxWrito-Finance
financial assets represent claim for future benefit or cash. Financial assets are formed by establishing contracts between participants. These financial assets are used for collection of huge amounts of money for business purposes.
Two major Types: Debt Securities and Equity Securities.
Debt Securities are Also known as fixed-income securities or instruments. The type of assets is formed by establishing contracts between investor and issuer of the asset.
• The first type of Debit securities is BONDS. Bonds are issued by corporations and government (both local and national government).
• The second important type of Debit security is NOTES. Apart from similarities associated with notes and bonds, notes have shorter term maturity.
• The 3rd important type of Debit security is TRESURY BILLS. These securities have short-term ranging from three months, six months, and one year. Issuer of such securities are governments.
• Above discussed debit securities are mostly issued by governments and corporations. CERTIFICATE OF DEPOSITS CDs are issued by Banks and Financial Institutions. Risk factor associated with CDs gets reduced when issued by reputable institutions or Banks.
Following are the risk attached with debt securities: Credit risk, interest rate risk and currency risk
There are no fixed maturity dates in such securities, and asset’s value is determined by company’s performance. There are two major types of equity securities: common stock and preferred stock.
Common Stock: These are simple equity securities and bear no complexities which the preferred stock bears. Holders of such securities or instrument have the voting rights when it comes to select the company’s board of director or the business decisions to be made.
Preferred Stock: Preferred stocks are sometime referred to as hybrid securities, because it contains elements of both debit security and equity security. Preferred stock confers ownership rights to security holder that is why it is equity instrument
<a href="https://www.writofinance.com/equity-securities-features-types-risk/" >Equity securities </a> as a whole is used for capital funding for companies. Companies have multiple expenses to cover. Potential growth of company is required in competitive market. So, these securities are used for capital generation, and then uses it for company’s growth.
Concluding remarks
Both are employed in business. Businesses are often established through debit securities, then what is the need for equity securities. Companies have to cover multiple expenses and expansion of business. They can also use equity instruments for repayment of debits. So, there are multiple uses for securities. As an investor, you need tools for analysis. Investment decisions are made by carefully analyzing the market. For better analysis of the stock market, investors often employ financial analysis of companies.
BYD SWOT Analysis and In-Depth Insights 2024.pptxmikemetalprod
Indepth analysis of the BYD 2024
BYD (Build Your Dreams) is a Chinese automaker and battery manufacturer that has snowballed over the past two decades to become a significant player in electric vehicles and global clean energy technology.
This SWOT analysis examines BYD's strengths, weaknesses, opportunities, and threats as it competes in the fast-changing automotive and energy storage industries.
Founded in 1995 and headquartered in Shenzhen, BYD started as a battery company before expanding into automobiles in the early 2000s.
Initially manufacturing gasoline-powered vehicles, BYD focused on plug-in hybrid and fully electric vehicles, leveraging its expertise in battery technology.
Today, BYD is the world’s largest electric vehicle manufacturer, delivering over 1.2 million electric cars globally. The company also produces electric buses, trucks, forklifts, and rail transit.
On the energy side, BYD is a major supplier of rechargeable batteries for cell phones, laptops, electric vehicles, and energy storage systems.
how to sell pi coins in all Africa Countries.DOT TECH
Yes. You can sell your pi network for other cryptocurrencies like Bitcoin, usdt , Ethereum and other currencies And this is done easily with the help from a pi merchant.
What is a pi merchant ?
Since pi is not launched yet in any exchange. The only way you can sell right now is through merchants.
A verified Pi merchant is someone who buys pi network coins from miners and resell them to investors looking forward to hold massive quantities of pi coins before mainnet launch in 2026.
I will leave the telegram contact of my personal pi merchant to trade with.
@Pi_vendor_247
Introduction to Indian Financial System ()Avanish Goel
The financial system of a country is an important tool for economic development of the country, as it helps in creation of wealth by linking savings with investments.
It facilitates the flow of funds form the households (savers) to business firms (investors) to aid in wealth creation and development of both the parties
Empowering the Unbanked: The Vital Role of NBFCs in Promoting Financial Inclu...Vighnesh Shashtri
In India, financial inclusion remains a critical challenge, with a significant portion of the population still unbanked. Non-Banking Financial Companies (NBFCs) have emerged as key players in bridging this gap by providing financial services to those often overlooked by traditional banking institutions. This article delves into how NBFCs are fostering financial inclusion and empowering the unbanked.
how can I sell pi coins after successfully completing KYCDOT TECH
Pi coins is not launched yet in any exchange 💱 this means it's not swappable, the current pi displaying on coin market cap is the iou version of pi. And you can learn all about that on my previous post.
RIGHT NOW THE ONLY WAY you can sell pi coins is through verified pi merchants. A pi merchant is someone who buys pi coins and resell them to exchanges and crypto whales. Looking forward to hold massive quantities of pi coins before the mainnet launch.
This is because pi network is not doing any pre-sale or ico offerings, the only way to get my coins is from buying from miners. So a merchant facilitates the transactions between the miners and these exchanges holding pi.
I and my friends has sold more than 6000 pi coins successfully with this method. I will be happy to share the contact of my personal pi merchant. The one i trade with, if you have your own merchant you can trade with them. For those who are new.
Message: @Pi_vendor_247 on telegram.
I wouldn't advise you selling all percentage of the pi coins. Leave at least a before so its a win win during open mainnet. Have a nice day pioneers ♥️
#kyc #mainnet #picoins #pi #sellpi #piwallet
#pinetwork
Currently pi network is not tradable on binance or any other exchange because we are still in the enclosed mainnet.
Right now the only way to sell pi coins is by trading with a verified merchant.
What is a pi merchant?
A pi merchant is someone verified by pi network team and allowed to barter pi coins for goods and services.
Since pi network is not doing any pre-sale The only way exchanges like binance/huobi or crypto whales can get pi is by buying from miners. And a merchant stands in between the exchanges and the miners.
I will leave the telegram contact of my personal pi merchant. I and my friends has traded more than 6000pi coins successfully
Tele-gram
@Pi_vendor_247
how to sell pi coins in South Korea profitably.DOT TECH
Yes. You can sell your pi network coins in South Korea or any other country, by finding a verified pi merchant
What is a verified pi merchant?
Since pi network is not launched yet on any exchange, the only way you can sell pi coins is by selling to a verified pi merchant, and this is because pi network is not launched yet on any exchange and no pre-sale or ico offerings Is done on pi.
Since there is no pre-sale, the only way exchanges can get pi is by buying from miners. So a pi merchant facilitates these transactions by acting as a bridge for both transactions.
How can i find a pi vendor/merchant?
Well for those who haven't traded with a pi merchant or who don't already have one. I will leave the telegram id of my personal pi merchant who i trade pi with.
Tele gram: @Pi_vendor_247
#pi #sell #nigeria #pinetwork #picoins #sellpi #Nigerian #tradepi #pinetworkcoins #sellmypi
US Economic Outlook - Being Decided - M Capital Group August 2021.pdfpchutichetpong
The U.S. economy is continuing its impressive recovery from the COVID-19 pandemic and not slowing down despite re-occurring bumps. The U.S. savings rate reached its highest ever recorded level at 34% in April 2020 and Americans seem ready to spend. The sectors that had been hurt the most by the pandemic specifically reduced consumer spending, like retail, leisure, hospitality, and travel, are now experiencing massive growth in revenue and job openings.
Could this growth lead to a “Roaring Twenties”? As quickly as the U.S. economy contracted, experiencing a 9.1% drop in economic output relative to the business cycle in Q2 2020, the largest in recorded history, it has rebounded beyond expectations. This surprising growth seems to be fueled by the U.S. government’s aggressive fiscal and monetary policies, and an increase in consumer spending as mobility restrictions are lifted. Unemployment rates between June 2020 and June 2021 decreased by 5.2%, while the demand for labor is increasing, coupled with increasing wages to incentivize Americans to rejoin the labor force. Schools and businesses are expected to fully reopen soon. In parallel, vaccination rates across the country and the world continue to rise, with full vaccination rates of 50% and 14.8% respectively.
However, it is not completely smooth sailing from here. According to M Capital Group, the main risks that threaten the continued growth of the U.S. economy are inflation, unsettled trade relations, and another wave of Covid-19 mutations that could shut down the world again. Have we learned from the past year of COVID-19 and adapted our economy accordingly?
“In order for the U.S. economy to continue growing, whether there is another wave or not, the U.S. needs to focus on diversifying supply chains, supporting business investment, and maintaining consumer spending,” says Grace Feeley, a research analyst at M Capital Group.
While the economic indicators are positive, the risks are coming closer to manifesting and threatening such growth. The new variants spreading throughout the world, Delta, Lambda, and Gamma, are vaccine-resistant and muddy the predictions made about the economy and health of the country. These variants bring back the feeling of uncertainty that has wreaked havoc not only on the stock market but the mindset of people around the world. MCG provides unique insight on how to mitigate these risks to possibly ensure a bright economic future.
What price will pi network be listed on exchangesDOT TECH
The rate at which pi will be listed is practically unknown. But due to speculations surrounding it the predicted rate is tends to be from 30$ — 50$.
So if you are interested in selling your pi network coins at a high rate tho. Or you can't wait till the mainnet launch in 2026. You can easily trade your pi coins with a merchant.
A merchant is someone who buys pi coins from miners and resell them to Investors looking forward to hold massive quantities till mainnet launch.
I will leave the telegram contact of my personal pi vendor to trade with.
@Pi_vendor_247
how to sell pi coins at high rate quickly.DOT TECH
Where can I sell my pi coins at a high rate.
Pi is not launched yet on any exchange. But one can easily sell his or her pi coins to investors who want to hold pi till mainnet launch.
This means crypto whales want to hold pi. And you can get a good rate for selling pi to them. I will leave the telegram contact of my personal pi vendor below.
A vendor is someone who buys from a miner and resell it to a holder or crypto whale.
Here is the telegram contact of my vendor:
@Pi_vendor_247
Poonawalla Fincorp and IndusInd Bank Introduce New Co-Branded Credit Cardnickysharmasucks
The unveiling of the IndusInd Bank Poonawalla Fincorp eLITE RuPay Platinum Credit Card marks a notable milestone in the Indian financial landscape, showcasing a successful partnership between two leading institutions, Poonawalla Fincorp and IndusInd Bank. This co-branded credit card not only offers users a plethora of benefits but also reflects a commitment to innovation and adaptation. With a focus on providing value-driven and customer-centric solutions, this launch represents more than just a new product—it signifies a step towards redefining the banking experience for millions. Promising convenience, rewards, and a touch of luxury in everyday financial transactions, this collaboration aims to cater to the evolving needs of customers and set new standards in the industry.
where can I find a legit pi merchant onlineDOT TECH
Yes. This is very easy what you need is a recommendation from someone who has successfully traded pi coins before with a merchant.
Who is a pi merchant?
A pi merchant is someone who buys pi network coins and resell them to Investors looking forward to hold thousands of pi coins before the open mainnet.
I will leave the telegram contact of my personal pi merchant to trade with
@Pi_vendor_247
Exploring Abhay Bhutada’s Views After Poonawalla Fincorp’s Collaboration With...beulahfernandes8
The financial landscape in India has witnessed a significant development with the recent collaboration between Poonawalla Fincorp and IndusInd Bank.
The launch of the co-branded credit card, the IndusInd Bank Poonawalla Fincorp eLITE RuPay Platinum Credit Card, marks a major milestone for both entities.
This strategic move aims to redefine and elevate the banking experience for customers.
Exploring Abhay Bhutada’s Views After Poonawalla Fincorp’s Collaboration With...
Confronting the zombies: policies for productivity revival
1. CONFRONTING THE ZOMBIES:
POLICIES FOR PRODUCTIVITY
REVIVAL
Dan Andrews and Giuseppe Nicoletti
Structural Policy Analysis Division
OECD Economics Department
Peterson Institute for International Economics
23 January 2018
2. Results from the project on:
Exit Policies and Productivity Growth
Based on research by:
Müge Adalet McGowan, Dan Andrews, Valentine Millot, Filippos
Petroulakis, Alessandro Saia
4. A revival of OECD productivity is
badly needed
Contributions to potential per capita output growth (% pa)
Source: OECD EO live December 2017
Pre-crisis: MFP story Post-crisis: K story
5. Three stylised facts emerge:
– Rising productivity dispersion
– Declining efficiency of reallocation
– Declining business dynamism (less entry and more
zombie firms)
Looking beyond averages:
diagnosing the disease
6. Average of multifactor productivity across sectors (log, 2001=0)
Looking beyond averages:
the laggards’ disease
Source: Andrews, D. C. Criscuolo and P. Gal (2016), “The Best versus the Rest: The Global Productivity
Slowdown, Divergence across Firms and the Role of Public Policy”, OECD Productivity Working Papers, No. 5.
Frontier
Frontier
Laggards Laggards
7. 50
100
150
200
250
300
2007 2008 2009 2010 2011 2012 2013
Share of zombie firms*
Index, 2007=100
Euro-8** GB
JP US
* Firms (≥10 years) with an interest coverage ratio less than 1 for 3 consecutive years. Listed firms only.
** Euro-8 refers to AT, BE, DE, FR, GR, IE, IT, NL.
The Walking Dead:
zombie firms on the rise
This points to policies that affect the exit or restructuring of weak firms.
But most data and evidence is about entry!
9. Much scope to revive productivity growth by
promoting easier exit or restructuring
Relevance of insolvency regimes for aggregate
productivity: channels and mechanisms
Cross-country comparison of effectiveness of
insolvency regimes: stigma, barriers to restructuring
Complementarity across insolvency, financial
and other reforms is large
The social costs can be contained via labour
market policies
The OECD contribution
11. Zombies absorb an increasing
share of labour and capital
Firms aged ≥10 years and with an interest coverage ratio<1
over three consecutive years
Source: Adalet McGowan, M., D. Andrews and V. Millot (2017), “The Walking Dead? Zombie Firms and Productivity
Performance in OECD countries”, OECD Economics Department Working Paper No 1372.
0
5
10
15
20
25
2007
2010
2013
2007
2010
2013
2007
2010
2013
2007
2010
2013
2007
2010
2013
2007
2010
2013
2007
2010
2013
2007
2010
2013
2007
2010
2013
BEL ESP FIN FRA GBR ITA KOR SWE SVN
Number of firms Employment Capital Stock%
12. Delaying their exit or restructuring:
1. Drags down average (unweighted) productivity
2. Stifles reallocation: by consuming scarce resources they
congest markets, undermining growth opportunities for
healthier firms
3. Deters entry of potentially innovative young firms
When more capital is sunk in zombie firms:
1. The typical healthy firm invests less (↓ K deepening)
2. Particularly so young and more productive firms (↓ MFP)
Why do zombie firms matter for
aggregate productivity?
13. 0.0
1.0
2.0
3.0
4.0
GRC ITA BEL PRT ESP DEU FIN LUX SWE JPN KOR AUT GBR FRA
%
0.0
0.4
0.8
1.2
ESP ITA SWE KOR GBR BEL FIN SVN FRA
%
Zombie firms congest markets and
hamper labour productivity…
Estimated gains from reducing zombie capital share to minimum level
A: Business investment
B: Multi-factor productivity
14. … by crowding-out credit
availability to healthy firms
Average bank loan availability for healthy firms for
each bin of zombie congestion
Source: D. Andrews and F. Petroulakis (2017), “Breaking the Shackles: Zombie Firms, Weak Banks and Depressed
Restructuring in Europe”, OECD Economics Department Working Papers, No. 1433.
Healthy firms report
greater difficulty
accessing credit
when they operate
in sectors where
more capital is sunk
in zombie firms
16. Insolvency regimes are crucial for firm exit and restructuring
since they can bring debtors and creditors to the table to
deal with financial distress in an orderly fashion.
Thus, they can affect aggregate growth via reallocation and
firm exit but also in terms of the types of firms that enter and
the nature of their business strategies.
BUT the limitations of existing policy indicators constrain
cross-country research on insolvency regimes and growth
A new OECD policy questionnaire yielded harmonised
cross-country indicators on the key design features of
insolvency regimes that impact the timely initiation and
resolution of proceedings
Insolvency regimes and productivity:
understanding the link
19. Insolvency reform can address three structural
sources of productivity weakness:
1. Reduce the capital sunk in zombie firms via:
a) Exit of zombie firms
b) Rehabilitation of weak firms thus implying lower social
costs to job churn than if only exit was envisaged
2. Reallocation of capital to more productive firms
3. Productivity growth of laggard firms via more
efficient technology diffusion
Insolvency reform can revive
productivity growth
20. 0
2
4
6
8
GBR FIN DEU JPN FRA PRT KOR SWE ESP SVN BEL AUT GRC ITA
Impact of reforms since 2010
Insolvency reform can reduce zombie
congestion…
Estimated gains from reducing barriers to restructuring (BTR) to minimum level
Reduction in zombie capital share (ZKS)
%
In 2013, the ZKS in Greece = 27%. Reforming BTR to best practice could reduce the
ZKS by 9%pts, with recent reforms potentially accounting for 5%pts of these gains.
21. 0
1
2
3
GBR DEU FIN FRA POL PRT ESP SWE AUT BEL HUN ITA
%
Impact of reforms since 2010
0
1
2
3
4
GBR DEU FIN FRA PRT ESP KOR SWE SVN AUT BEL ITA
%
… and revive aggregate MFP growth
via reallocation and diffusion
Estimated gains from reducing barriers to restructuring (BTR) to minimum level
A: Gain to productivity-enhancing capital reallocation
B: Gain to laggard firm multi-factor productivity growth
23. Zombie firms survive due to bank
forbearance: NPL resolution is key
Source: D. Andrews and F. Petroulakis (2017), “Breaking the Shackles: Zombie Firms, Weak Banks and Depressed
Restructuring in Europe”, OECD Economics Department Working Papers, No. 1433.
Average zombie share for each bin of bank health
Purged of country-industry-year fixed effects
Weak banks increase
the survival of zombie
of firms and distort
capital allocation
24. 012
GBR PRT FRA AUT DEU GRC ESP SVN EST LTV
% Impact of reforms since 2010
… insolvency reform enhances the
effectiveness of NPL resolution
Source: D. Andrews and F. Petroulakis (2017), “Breaking the Shackles: Zombie Firms, Weak Banks and Depressed
Restructuring in Europe”, OECD Economics Department Working Papers, No. 1433.
If bank health improves*, how much more would the zombie firm
share decline if barriers to restructuring were at the minimum level?
Improvements in bank
health translate into
larger reductions in the
zombie firm share when
insolvency regimes
promote restructuring
*Shock to bank health = 2 standard deviations
Insolvency reform can
reduce banks incentives
to engage in forbearance
25. Promoting equity financing can revive
productivity diffusion
Gain to laggard firm MFP growth from
reducing debt-bias to sample minimum
Differential effect
Debt bias in corporate tax systems
%pt difference between effective tax rates on
equity finance and debt finance
Source: OECD and Adalet McGowan, Andrews and Millot (2017), “Insolvency regimes, technology diffusion and productivity
growth: evidence from firms in OECD countries”, OECD Economics Department Working Papers No. 1425.
0
2
4
6
8
10
12
14
BEL POL HUN AUT SWE FIN GBR DEU PRT ITA ESP FRA USA
%
0.0
0.5
1.0
1.5
2.0
2.5
3.0
BEL POL HUN AUT SWE FIN GBR DEU PRT ITA ESP FRA USA
%
27. Corporate restructuring intensifies job/firm churning:
Benefits: ↑ job growth of non-zombies; better matching
Costs: ↑ job destruction political economy barriers to
structural reform if left unaddressed.
Workers displaced by firm exit more likely to return to
work when:
More active measures – retraining, job placement – than
passive measures – long-lasting unemployment benefits.
Policy promotes residential mobility – i.e. tax wedge and
transaction taxes in housing markets are lower.
ALMPs more effective when public sector efficiency is
higher and barriers to firm entry are lower
Coping with creative destruction
28. 0
1
2
3
4
5
Low Entry Barriers Average Entry Barriers High Entry Barriers
Impact of ALMPs on re-employment according to the level of entry barriers
%
Entry reform enhances the bang-for-
the-buck of ALMP spending
Impact of increasing ALMPs by 0.25%pts of GDP on re-employment
probability of workers displaced by firm exit
Source: Andrews and Saia (2016), “Coping with Creative Destruction: Reducing the Costs of Firm Exit”, OECD Economics
Department Working Paper, No 1353.
ALMPs are more effective when firm entry barriers are low as jobs
are more abundant when new firms can enter the market and grow.
30. Productivity growth in Europe can be revived by:
Insolvency regime reform to reduce barriers to corporate
restructuring and the personal costs of business failure
Restoring bank health and promoting non-bank financing by
↓ debt bias in corporate tax systems
Simultaneously pursue insolvency reforms with initiatives to
reduce regulatory entry barriers and NPLs.
benefits for the US economy via multiple channels
Since these reforms will amplify job/firm churning, they
should be flanked by well-designed ALMPs
Reduce regulatory entry barriers to get better value for
money from labour market spending.
The corporate restructuring path to
higher productivity growth
31. Technical background papers
1. Adalet McGowan, M. & D. Andrews (2018), “Design of Insolvency Regimes across
Countries”, OECD Economics Department Working Papers, forthcoming.
2. Andrews, D. & F. Petroulakis (2017), “Breaking the Shackles: Zombie Firms, Weak Banks
and Depressed Restructuring in Europe”, OECD Economics Department Working Papers,
No. 1433.
3. Adalet McGowan, M., D. Andrews & V. Millot (2017), "Insolvency Regimes, Technology
Diffusion and Productivity Growth: Evidence from Firms in OECD Countries", OECD
Economics Department Working Papers, No. 1425.
4. Adalet McGowan, M., D. Andrews & V. Millot (2017), “Insolvency regimes, zombie firms and
capital reallocation”, OECD Economics Department Working Papers, No. 1399.
5. Adalet McGowan, M., D. Andrews & V. Millot (2017), “The Walking Dead?: Zombie Firms
and Productivity Performance in OECD Countries”, OECD Economics Department Working
Papers, No. 1372.
6. Andrews, D. & A. Saia (2017), "Coping with creative destruction: Reducing the costs of firm
exit", OECD Economics Department Working Papers, No. 1353.
7. Adalet McGowan, M. & D. Andrews (2016), “Insolvency Regimes And Productivity Growth: A
Framework For Analysis”, OECD Economics Department Working Papers, No. 1309.
33. A1. What are zombie firms and how
to identify them?
Zombie firms are firms that would typically exit in a
competitive market but nonetheless survive.
Approach 1: Persistent financial weakness (Bank of Korea)
Old incumbent firms (≥10 years) with interest coverage
ratio<1 for 3 consecutive years
Approach 2: Firms receiving subsidized bank credit
(Caballero et al., 2008)
Actual interest repayments < estimated benchmark R*
based on the firm debt structure and market interest rates
Our main econometric conclusions are robust to both measures.
We focus on Approach 1 for simplicity and to maximise data
coverage.
34. -0.30
-0.25
-0.20
-0.15
-0.10
-0.05
0.00
0
1
2
3
4
5
6
2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013
Share of zombie firms (LHS) Labour productivity relative to non-zombie firms (RHS)
% log points
A2. The Walking Dead:
zombie firms on the rise
Firms aged ≥10 years with an interest coverage ratio<1 over 3 consecutive years
Unweighted average across selected OECD countries
Source: Adalet McGowan, M., D. Andrews and V. Millot (2017), “The Walking Dead? Zombie Firms and Productivity Performance in OECD
countries”, OECD Economics Department Working Paper No. 1372.
Conclusions are robust to alternate measures of zombie firms (see slide A1)
35. -1
0
1
High personal cost of
entrepreneurial failure
Low personal cost of
entrepreneurial failure
%
A3. Insolvency reform raises the
productivity gains of entry reform
Gain to laggard firm MFP growth from reducing adm. burdens on start-ups
Reducing the personal costs of entrepreneurial failure encourages more
experimentation and create sufficient space for new entrants to grow
Source: Adalet McGowan, Andrews and Millot (2017), “Insolvency regimes, technology diffusion and productivity growth:
evidence from firms in OECD countries”, OECD Economics Department Working Papers No. 1425.
36. A4. Promoting equity financing can
revive productivity diffusion
Gain to laggard firm annual MFP growth from financial reform
Raising VC financing to sample maximum Reducing debt-bias to sample minimum
0
1
2
3
%
0
1
2
3
%
Source: Adalet McGowan, Andrews and Millot (2017), “Insolvency regimes, technology diffusion and productivity growth:
evidence from firms in OECD countries”, OECD Economics Department Working Papers No. 1425.
37. October 2017March 2017
Exit Policies and Productivity
Growth
2. Are weak firms stifling
productivity growth?
October 2016
2017
5. Can we improve the design of exit policies?
October 2016 March 2017
3. What happens to the
workers when firms exit?
4. Can we improve the
measurement of exit
policies?
March 2016
1. How do we think about the exit margin,
productivity and policy?
Coping with
Creative
Destruction:
Reducing the
Costs of Firm
Exit Policies and
Productivity
Growth: a
Framework for
Analysis
New policy
indicators of
insolvency
regimes
The Walking
Dead?: Zombie
Firms and
Productivity
Performance in
Insolvency
Regimes,
Technology
Diffusion and
Productivity
Growth
Insolvency
regimes,
zombie firms
and capital
reallocation
Breaking the
Shackles:
Zombie Firms,
Weak Banks
and Depressed
Restructuring