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The output effects of reforms: empirical evidence from 90 countries

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  • Christos Mavrogiannis
  • Athanasios Tagkalakis

Abstract

Utilizing a new annual dataset of structural reforms covering 90 countries from 1973 to 2014, we investigate the long-term effects of major reform shocks on growth. By applying the local projection method and addressing reform endogeneity with the Augmented Inverse Probability Weighted estimator, we find that reforms have a positive long-term effect on growth. Advanced economies reap the greatest benefits of reforms in the long term, while emerging market economies benefit in the short to medium term. Low-income countries enjoy only limited positive effects from reforms.

Suggested Citation

  • Christos Mavrogiannis & Athanasios Tagkalakis, 2025. "The output effects of reforms: empirical evidence from 90 countries," Economics and Business Letters, Oviedo University Press, vol. 14(3), pages 126-133.
    • Handle: RePEc:ove:journl:aid:21729
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    File URL: https://reunido.uniovi.es/index.php/EBL/article/view/21729
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