4th
It’s the kind of thing that has made European productivity lag behind the U.S. in recent decades. McKinsey in a study published last year notes that European productivity grew by 15% between 1995 and 2005, while U.S. productivity grew 22%. McKinsey identified a number of regulatory barriers that constrict the services sector throughout the EU. Lo and behold, pharmacy regulation is an issue, McKinsey says: “Many European countries limit the number of pharmacies, for instance, in effect creating regional monopolies on retail sales of medicinal products.”
McKinsey notes that Europe lags far behind the U.S. on economic growth contributed by the “local services” sector, which includes retail trade. Local services alone explains two-thirds of the gap between U.S. and European productivity, McKinsey says.
