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The Growth Impact of Structural Reforms in Latin America. Another Look

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  • Alessia LO TURCO

    () (Universita' Politecnica delle Marche, Dipartimento di Economia)

Abstract

Aim of this paper is to further investigate the growth effects of structural reforms in Latin America and the Caribbean (LAC). Although some work on the topic already exists this is based on dynamic panel data models where reforms are measured by means of the Reform Indexes, originally calculated by Lora et al.(1997) and then extended by Morley et al.(1999) for the period 1970-1995. Now, with much of the reform effort in LAC countries concentrated in the end of the 80s and in the beginning of the 90s, an empirical analysis with observations up to 1995 might not be enough for a correct detection of growth effects of structural reforms. Moreover, previous results might be driven by the estimation strategy too.;Within this frame, this paper tries to contribute in both ways. Firstly, an actualized version of the Reform Indexes(Escaith et al.(2003)) is used with observations up to 2000. Secondly, differently from previous studies, the estimation strategy is based on the adoption of Within Group estimator and Kiviet(1995) correction for Within Group estimator when, given the number of cross-section units, a shorter time dimension is at hand. Results are compared to estimates from Arellano and Bondo first difference estimator. Finally a sensitivity analysis is performed in order to check the robustness of results.

Suggested Citation

  • Alessia LO TURCO, 2005. "The Growth Impact of Structural Reforms in Latin America. Another Look," Working Papers 235, Universita' Politecnica delle Marche (I), Dipartimento di Scienze Economiche e Sociali.
  • Handle: RePEc:anc:wpaper:235
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    References listed on IDEAS

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    Cited by:

    1. Renato BALDUCCI, 2005. "Public Expenditure and Economic Growth. A critical extension of Barro's (1990) model," Working Papers 240, Universita' Politecnica delle Marche (I), Dipartimento di Scienze Economiche e Sociali.
    2. Roberto ESPOSTI & Pierpaolo PIERANI, 2005. "Price, Private Demand and Optimal Provision of Public R&D in Italian Agriculture," Working Papers 238, Universita' Politecnica delle Marche (I), Dipartimento di Scienze Economiche e Sociali.

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