Spain: Selected Issues

IMF Staff Country Reports, January 30, 2017

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Spain’s weak productivity performance has been linked to the dominance of many low-productivity small firms and inefficient allocation of resources.
The biggest gain can be expected from lowering regulatory barriers to competition and the cost of doing business, including at the regional level.
Further improving the access to equity and credit financing, in particular for innovative start-up companies, can make important contributions to raising productivity growth.
Addressing potential disincentive effects of size-contingent rules can also make important contributions to raising productivity growth.
Supporting innovation through increasing the efficiency of Research and Development (R&D) incentives and enhancing the private R&D investment should generate positive spillovers, which are difficult to capture empirically.

Lower regulatory barriers to competition and reduce the cost of doing business, including reforms at the regional level.
Improve access to equity financing for firms, with a particular focus on innovative start-up companies.
Improve access to credit financing for firms, including mechanisms that facilitate financing for smaller and innovative firms.
Review and address size-contingent rules that create disincentives for firm growth.
Increase the efficiency of R&D incentives and promote measures that enhance private R&D investment to foster innovation and generate positive spillovers.

Subjects: Banking, Commercial banks, Export performance, Exports, Financial institutions, International trade, Production, Productivity, Total factor productivity
Keywords: bank, Commercial banks, CR, Europe, export, Export performance, Exports, firm, firm growth, Global, ISCR, market discipline, market-financing cost, market-issued securities, procedure, Productivity, Spain, TFP dynamics, Total factor productivity