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Structural Reforms and Growth in Transition: A Meta-Analysis

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  • Jan Babecky

    ()

  • Tomas Havranek

    ()

Abstract

The present fiscal difficulties of many countries amplify the call for structural reforms. To provide stylized facts on how reforms worked in the past, we quantitatively review 60 studies estimating the relation between reforms and growth. These studies examine structural reforms carried out in 26 transition countries around the world. Our results show that an average reform caused substantial costs in the short run, but had strong positive effects on long-run growth. Reforms focused on external liberalization proved to be more beneficial than others in both the short and long run. The findings hold even after correction for publication bias and misspecifications present in some primary studies.

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Paper provided by William Davidson Institute at the University of Michigan in its series William Davidson Institute Working Papers Series with number wp1057.

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Length: pages
Date of creation: 15 Aug 2013
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Handle: RePEc:wdi:papers:2013-1057

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Keywords: Structural reforms; growth; transition economies; meta-analysis; Bayesian model averaging;

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Cited by:
  1. Tomas Adam & Oxana Babecka Kucharcukova & Jan Babecky & Kamil Galuscak & Tomas Holub & Eva Hromadkova & Narcisa Liliana Kadlcakova & Lubos Komarek & Zlatuse Komarkova & Petr Kral & Ivana Kubicova & Ji, 2012. "Analyses of the Czech Republic's Current Economic Alignment with the Euro Area 2012," Occasional Publications - Edited Volumes, Czech National Bank, Research Department, number as12 edited by Romana Zamazalova & Jakub Mateju, August.

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