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Reform redux: Measurement, determinants and growth implications

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  • Campos, Nauro F.
  • Horváth, Roman

Abstract

Measurement issues are one of the most important reasons for the highly contrasting findings in the literature on the effects of structural reforms on growth. This paper puts forward improved measures of economic liberalization across countries and over time, focusing on the unique experience of the transition economies. The paper shows that structural reforms, according to these new measures, follow a much richer dynamics than the one suggested by existing indexes. It also finds that such improved measures also generate stronger links with current theoretical work: in standard growth specifications, it finds that these new measures of reform have larger and more precisely estimated effects than the existing ones.

Suggested Citation

  • Campos, Nauro F. & Horváth, Roman, 2012. "Reform redux: Measurement, determinants and growth implications," European Journal of Political Economy, Elsevier, vol. 28(2), pages 227-237.
    • Handle: RePEc:eee:poleco:v:28:y:2012:i:2:p:227-237
    DOI: 10.1016/j.ejpoleco.2011.12.002
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    References listed on IDEAS

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    More about this item

    Keywords

    Structural reforms; Price liberalization; Trade liberalization; Privatization;
    All these keywords.

    JEL classification:

    • E23 - Macroeconomics and Monetary Economics - - Consumption, Saving, Production, Employment, and Investment - - - Production
    • D72 - Microeconomics - - Analysis of Collective Decision-Making - - - Political Processes: Rent-seeking, Lobbying, Elections, Legislatures, and Voting Behavior
    • H26 - Public Economics - - Taxation, Subsidies, and Revenue - - - Tax Evasion and Avoidance
    • O17 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Formal and Informal Sectors; Shadow Economy; Institutional Arrangements

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