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Growth and financial reforms trajectory: an optimal matching sequence analysis approach

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  • Bicaba, Zorobabel

Abstract

This paper makes two important , even if preliminary, methodological contributions to the financial reforms literature. The first contribution is that it introduces a new framework for the metric of sequence analysis, namely, Optimal Matching Sequence Analysis. The second is that it provides an innovative framework namely synthetic counterfactual approach for the assessment of the impact of financial reforms sequence. It shows that the trajectory of financial reforms followed by countries, affects the level and the volatility of GDP per capita growth.

Suggested Citation

  • Bicaba, Zorobabel, 2011. "Growth and financial reforms trajectory: an optimal matching sequence analysis approach," MPRA Paper 34057, University Library of Munich, Germany.
    • Handle: RePEc:pra:mprapa:34057
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    File URL: https://mpra.ub.uni-muenchen.de/34057/1/MPRA_paper_34057.pdf
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    References listed on IDEAS

    as
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    2. Kaminsky, Graciela Laura & Schmukler, Sergio L., 2002. "Short-run pain, long-run gain : the effects of financial liberalization," Policy Research Working Paper Series 2912, The World Bank.
    3. Laurent Lesnard, 2006. "Optimal Matching and Social Sciences," Working Papers 2006-01, Center for Research in Economics and Statistics.
    4. Alberto Abadie & Javier Gardeazabal, 2003. "The Economic Costs of Conflict: A Case Study of the Basque Country," American Economic Review, American Economic Association, vol. 93(1), pages 113-132, March.
    5. Abdul Abiad & Enrica Detragiache & Thierry Tressel, 2010. "A New Database of Financial Reforms," IMF Staff Papers, Palgrave Macmillan, vol. 57(2), pages 281-302, June.
    6. Calvo, Guillermo A., 1987. "On the costs of temporary policy," Journal of Development Economics, Elsevier, vol. 27(1-2), pages 245-261, October.
    7. Paul A. David, 2007. "Path Dependence, its Critics, and the Quest for ‘Historical Economics’," Chapters, in: Geoffrey M. Hodgson (ed.), The Evolution of Economic Institutions, chapter 7, Edward Elgar Publishing.
    8. Sebastian Edwards, 1989. "On the Sequencing of Structural Reforms," NBER Working Papers 3138, National Bureau of Economic Research, Inc.
    9. Abadie, Alberto & Diamond, Alexis & Hainmueller, Jens, 2010. "Synthetic Control Methods for Comparative Case Studies: Estimating the Effect of California’s Tobacco Control Program," Journal of the American Statistical Association, American Statistical Association, vol. 105(490), pages 493-505.
    10. Andrew Abbott, 1990. "A Primer on Sequence Methods," Organization Science, INFORMS, vol. 1(4), pages 375-392, November.
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    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

    Financial reforms trajectory Mundell trilemma Optimal matching sequence analysis;

    JEL classification:

    • N10 - Economic History - - Macroeconomics and Monetary Economics; Industrial Structure; Growth; Fluctuations - - - General, International, or Comparative
    • C63 - Mathematical and Quantitative Methods - - Mathematical Methods; Programming Models; Mathematical and Simulation Modeling - - - Computational Techniques
    • C19 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods and Methodology: General - - - Other
    • D52 - Microeconomics - - General Equilibrium and Disequilibrium - - - Incomplete Markets
    • E61 - Macroeconomics and Monetary Economics - - Macroeconomic Policy, Macroeconomic Aspects of Public Finance, and General Outlook - - - Policy Objectives; Policy Designs and Consistency; Policy Coordination

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