Macroeconomic and fiscal effects of the draft National Recovery and Resilience Plan - Report to the Secretary of State for Recovery and Strategic Investments 28/04/2021
The National Recovery and Resilience Plan details the use of the €5.925 billion allocated under the Recovery and Resilience Facility. The major part (88%) of the Belgian plan is directly intended to increase the capital stock of the Belgian economy through public investment and aid to private investment. In the short term, at the peak of the plan's stimulus effect, economic activity would be 0.2% higher than in the non-plan scenario. Although the stimulus is temporary, it has long-term effects due to the increase in the public capital stock and the support for R&D activities that improve the profitability of the capital stock of firms and encourage its accumulation. By 2040, GDP is still projected to be 0.1% above non-plan growth path. This estimate does not take into account the reform component of the plan, nor the broader recovery, investment and reform plans announced by the Regions and the federal government, nor the effect of foreign plans on the Belgian economy.
Has the production process of the industries that do the most R&D in Belgium changed over the last 10 years? This analysis attempts to answer this question using both sectoral and company data.
This Working Paper analyses the competitive position of the pharmaceutical industry over the 2000-2017 period. The evolution of price/cost competitiveness and non-cost competitiveness is studied based on a comparison with our neighbouring countries France, the Netherlands and Germany, and with Denmark, Ireland, Slovenia and Switzerland. The study also analyses a series of global factors and factors specific to the pharmaceutical industry that may influence competitiveness.
Working Paper 05-19 (fr),
Belgium has committed to raise investment in research and development (R&D) to 3% of GDP by 2020. In fulfilment of this commitment, the federal government introduced different tax incentives in support of business R&D. This paper presents the results of the third evaluation of the efficiency of these tax incentives, covering the period 2003-2015.
Working Paper 04-19 (en),
This working paper analyses the economic impact of a regulated professional services reform in Belgium through simulations based on the European Commission’s DSGE model QUEST III R&D
Working Paper 09-18 (en),
Growth and Productivity in Belgium 17/10/2017
The objective of the report is to provide an overview of the main drivers of economic growth and the productivity evolution in Belgium, in comparison with its three neighbouring countries and the US over 1970 and 2015. Recent evolutions, over 2000-2015, are analysed in details in order to shed light on the impact of the great recession. The growth accounting methodology is applied to explain labour productivity growth for the total economy, manufacturing and market services.
Working Paper 11-17 (en),
Modelling unobserved heterogeneity in distribution - Finite mixtures of the Johnson family of distributions 31/08/2017
This paper proposes a new model to account for unobserved heterogeneity in empirical modelling. The model extends the well-known Finite Mixture (or Latent Class) Model by using the Johnson family of distributions for the component densities. Due to the great variety of distributional shapes that can be assumed by the Johnson family, the method does not impose the usual a priori assumptions regarding the type of densities that are mixed.
Working Paper 14-17 (en),
Belgian government investment, and specifically the part spent on infrastructure, is relatively low both in historical terms and compared to neighbouring countries. A simulation with the European Commission’s Quest III model suggests that increasing government investment permanently by 0.5% of GDP leads to a growth in GDP, private consumption and private investment. The impact of alternative financing mechanisms is compared. Finally, a budget neutral shift of investment in favour of infrastructure is found to yield significant benefits in terms of GDP and its main components already in the medium run.
Young Firms and Industry Dynamics in Belgium 24/06/2016
Recent studies reveal the importance of entrants and young firms for job creation, productivity and economic growth. Some scholars argue that the falling rate at which new firms are established, can explain, to a certain extent, the productivity slowdown witnessed in most OECD countries. Belgium appears to stand out unfavourably from other countries in its very low start-up rate. This paper reviews the empirical cross-country evidence, provides some additional analysis of the role of young firms in industry-level employment and productivity dynamics in Belgium and concludes with a discussion of the implications for economic policy.
Working Paper 06-16 (en),
Belgium 2.0 Naar een succesvolle digitale transformatie van de economie: de rol van breedbandinfrastructuur en andere elementen
Belgium 2.0 Vers une transformation numérique de l'économie réussie : Le rôle des infrastructures à haut débit et d'autres éléments 18/11/2015
In the context of the ongoing structural transformation of the economy (and a waning global productivity growth), policy makers and authorities in the most developed countries (among which is Belgium) increasingly focus on the digitisation of the economy as a mainspring for a transformation towards a knowledge- and innovation-driven economy. In this sense, the word ‘digitisation’ refers to all social, economic and societal evolutions that follow investments in ICT. As a “general purpose technology” ICT offers opportunities that surpass the pure ICT-industries, and may thus allow for serious heightening of prosperity and societal well-being. Besides the impact upon productivity, further digitisation may offer solutions for a number of complex societal challenges, such as demographic evolutions (ageing), the increasing demand for mobility, the transition towards the production of renewable energy…
De Belgische ICT in vogelvlucht - Economische betekenis en positionering t.o.v. de buurlanden 15/10/2015
This study discusses the production and use of ICT in Belgium, and identifies its strengths and weaknesses in comparison with the neighbouring countries. It covers both ICT goods and services, noting that the production of services is almost seven times as high as the production of goods. In this study, the use of ICT is limited to their use as a production factor, but not as a consumption good. In the Belgian economy, ICT industries are characterized by their dynamism, with a high entry rate, a high labour productivity and a relatively strong profitability. Moreover, ICT services significantly contribute to foreign trade. ICT industries are closely linked with the Belgian economy. Compared to the neighbouring countries, however, ICT industries have a smaller share in the economy and a smaller share in the foreign trade of goods. Moreover, innovation in terms of patent applications is disappointing, and ICT capital has a relatively small and even diminishing contribution to economic growth. Within the Belgian ICT sector, telecommunications relatively stand out compared to the other ICT industries, with a relatively large share in the economy and services exports. They are the main user of ICT products, and can thus boost the development of ICT.
Working Paper 07-15 (nl),
The paper analyses the long-term trend of Belgian economic growth and the more recent evolution of labour productivity including the impact of the crisis. It identifies the causes of declining trend of productivity gains by analysing the structural changes in the economy and by applying the growth accounting methodology on industry-level data. Finally, possible policy actions are detailed which minimise the negative short term impact on aggregate demand while maximising the positive effect on labour productivity growth.
Working Paper 06-15 (en),
This paper presents the results of a second evaluation of the tax incentives that were introduced – between 2005 and 2008 – by the Belgian federal government to support R&D activities of private companies. Compared with the first assessment, carried out in 2012, this evaluation extends the period considered by two years (2010 and 2011) and provides the results of a first assessment of the tax credit for investment in R&D and the tax deduction of 80% of qualifying gross patent income that were introduced in 2007. The second evaluation also elaborates on the difficulties of estimation procedures to establish the "causal" effect of public support and the importance to account for the strong persistence in firm-level R&D expenditures.
Working Paper 05-15 (en),
In this paper we assess the impact of public support for R&D activities on the educational mix of R&D employees in private companies in Belgium, covering the period 2001-2009. Data on federal tax incentives in support of R&D activities are matched with R&D survey data to investigate changes in the share of R&D employees with a specific degree: PhDs; higher education (second stage and first stage respectively); and other qualifications. Estimations show that public support significantly
raises the share of researchers holding a PhD. There are indications that PhDs substitute for R&D employees with a lower degree. We also show that controlling for the changes in the educational mix of R&D personnel lowers the estimates of the impact of public support on the average wages of researchers.
Working Paper 08-14 (en),
Monitoring van de relancestrategie van de Federale regering – Voortgangsverslag
Monitoring de la stratégie de relance du Gouvernement fédéral - Rapport d’avancement 17/07/2014
The present document is the fourth biannual progress report in which the Federal Planning Bureau (FPB) gives an account of the monitoring of the economic stimulus strategy announced by the Federal government in the summer of 2012.
This progress report gives an overview of the measures to follow up and reviews the progress of their implementation (situation on June 30, 2014).
Monitoring de la stratégie de relance du Gouvernement fédéral - Rapport d’avancement
Monitoring van de relancestrategie van de Federale regering - Voortgangsverslag 21/02/2014
The present document is the third biannual progress report in which the Federal Planning Bureau (FPB) gives an account of the monitoring of the economic stimulus strategy announced by the Federal government in the summer of 2012.
This progress report gives an overview of the measures to follow up and reviews the progress of their implementation (situation on January 31, 2014). In addition, the report attempts to provide an analysis of those measures.
Arbeidskosten, loonsubsidies, arbeidsproductiviteit en opleidingsinspanningen van ondernemingen
Coût salarial, subventions salariales, productivité du travail et effort de formation des entreprises 19/07/2013
Within the context of the economic stimulus plan adopted at the end of 2012, the government set up a group of experts from the National Bank of Belgium (NBB), the Federal Planning Bureau (FPB), the High Council for Employment (HCE), the Directorate General Statistics and Economic Information (DGSEI), the Central Economic Council (CEC) and Eurostat. The group was charged with the following missions:
- an impact analysis of subsidies which decrease labour costs in Belgium and in its three main neighbouring countries;
- an analysis per industry of the differences in labour costs and productivity between Belgium and its three main neighbouring countries;
- an objectification of the training efforts by enterprises with regard to the 1.9 % objective set by law.
To complete these missions, the group of experts has drawn up this two-part report. The first part (A) deals with productivity and labour costs and the second part (B) discusses training efforts by enterprises.
Monitoring de la stratégie de relance du Gouvernement fédéral - Rapport d’avancement
Monitoring van de relancestrategie van de Federale regering - Voortgangsverslag 18/07/2013
The present document is the second biannual progress report in which the Federal Planning Bureau (FPB) gives an account of the monitoring of the economic stimulus strategy announced by the Federal government in the summer of 2012.
It offers an overview of the measures to follow up and reviews the progress of their implementation (situation on 30 June 2013). In addition, the report attempts to provide a first analysis of those measures. Through a number of selected indicators, it presents a numerical benchmark before implementation or, when possible, a first ex ante impact assessment.
Monitoring de la stratégie de relance du gouvernement fédéral - Rapport d’avancement
Monitoring van de relancestrategie van de Federale regering - Voortgangsverslag 22/02/2013
In July 2012, the federal government announced its economic stimulus strategy. The key objectives of the strategy include supporting the purchasing power of households, enhancing the economy’s competitiveness and creating more high-quality jobs.
The stimulus strategy introduced a follow-up and monitoring procedure which commissions the Federal Planning Bureau to report the government every six months on the procedure’s evolution and the efficiency of the measures taken in view of the strategy’s objectives. This first monitoring report presents the monitoring procedure, gives an overview of the measures to follow up (the scope) and reviews the progress of implementation of the measures (situation on 31 January 2013).
The impact of subsidies and fiscal incentives on corporate R&D expenditures in Belgium (2001-2009) 25/01/2013
This paper presents the results of an initial evaluation of federal fiscal incentives in support of Research and Development (R&D) by companies in Belgium. The impact of regional subsidies and the partial exemption from advance payment for R&D personnel is estimated for the period 2001-2009. The results show that the existing measures of public support have stimulated companies to carry out additional R&D activities.
Working Paper 01-13 (en),
Fragiliteit van de financiële structuur van de niet-financiële ondernemingen in de marktsector in België in 2007 en 2010 02/08/2012
The working paper compares the financial structure of non-financial companies by branch between 2007 and 2010. In particular, the analysis focuses on the financial fragility of branches. It also tries to determine whether the problems faced by entreprises during the 2008-2010 period can partly be explained by the financial structure of those entreprises in 2007.
Working Paper 10-12 (nl),
Le système d’innovation en Wallonie 28/02/2012
This working paper analyses the performances of the Walloon innovation system in 2010. It concentrates on the six dimensions of the innovation system: knowledge development, human resources, R&D valorisation, innovation absorption capacity, entrepreneurial skills and financing capacity. These pillars are assessed by comparing the Walloon performances with those of European countries and regions with a similar industrial heritage. The analysis underlines the good performances of the mobilisation of financial resources in favour of R&D activities but also a potential problem in terms of human resources available for these activities. Maintaining a sufficient flow of competence by new science graduates and engineers and by the implementation of lifelong learning remains the key challenge in the years to come.
Working Paper 04-12 (fr),