This paper examines the relationship between regulatory reforms and growth outcomes in OECD countries. Using a new set of quantitative indicators of regulation, the authors show that regulatory settings have become more varied in recent years despite extensive liberalization and privatization. The study focuses on multifactor productivity (MFP), which plays a crucial role in GDP growth and accounts for a significant share of its cross-country variance. The findings indicate that reforms promoting private governance and competition tend to boost productivity. Privatization and entry liberalization are estimated to have a positive impact on productivity, particularly in manufacturing where countries are further from technology leaders. Strict product market regulations and a lack of regulatory reforms are likely to explain the relatively poorer productivity performance of some European countries, especially in industries where Europe has a technology gap (e.g., ICT-related industries). The results suggest that differences in growth patterns across OECD countries, particularly between large Continental European economies and the United States, can be attributed to these regulatory factors.This paper examines the relationship between regulatory reforms and growth outcomes in OECD countries. Using a new set of quantitative indicators of regulation, the authors show that regulatory settings have become more varied in recent years despite extensive liberalization and privatization. The study focuses on multifactor productivity (MFP), which plays a crucial role in GDP growth and accounts for a significant share of its cross-country variance. The findings indicate that reforms promoting private governance and competition tend to boost productivity. Privatization and entry liberalization are estimated to have a positive impact on productivity, particularly in manufacturing where countries are further from technology leaders. Strict product market regulations and a lack of regulatory reforms are likely to explain the relatively poorer productivity performance of some European countries, especially in industries where Europe has a technology gap (e.g., ICT-related industries). The results suggest that differences in growth patterns across OECD countries, particularly between large Continental European economies and the United States, can be attributed to these regulatory factors.