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Structural Reforms and Economic Performance in Advanced and Developing Countries

Author

Listed:
  • Antonio Spilimbergo
  • Alessandro Prati
  • Jonathan David Ostry

Abstract

This volume examines the impact on economic performance of structural policies-policies that increase the role of market forces and competition in the economy, while maintaining appropriate regulatory frameworks. The results reflect a new dataset covering reforms of domestic product markets, international trade, the domestic financial sector, and the external capital account, in 91 developed and developing countries. Among the key results of this study, the authors find that real and financial reforms (and, in particular, domestic financial liberalization, trade liberalization, and agricultural liberalization) boost income growth. However, growth effects differ significantly across alternative reform sequencing strategies: a trade-before-capital-account strategy achieves better outcomes than the reverse, or even than a "big bang"; also, liberalizing the domestic financial sector together with the external capital account is growth-enhancing, provided the economy is relatively open to international trade. Finally, relatively liberalized domestic financial sectors enhance the economy's resilience, reducing output costs from adverse terms-of-trade and interest-rate shocks; increased credit availability is one of the key mechanisms.

Suggested Citation

  • Antonio Spilimbergo & Alessandro Prati & Jonathan David Ostry, 2009. "Structural Reforms and Economic Performance in Advanced and Developing Countries," IMF Occasional Papers 268, International Monetary Fund.
  • Handle: RePEc:imf:imfocp:268
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    Citations

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    Cited by:

    1. Tapsoba,Sampawende J.-A. & Kouame,Wilfried Anicet Kouakou, 2018. "Structural reforms and firms'productivity : evidence from developing countries," Policy Research Working Paper Series 8308, The World Bank.
    2. Christiansen, Lone & Schindler, Martin & Tressel, Thierry, 2013. "Growth and structural reforms: A new assessment," Journal of International Economics, Elsevier, vol. 89(2), pages 347-356.
    3. Alessandra Bonfiglioli & Gino Gancia, 2015. "Economic Uncertainty and Structural Reforms," Working Papers 847, Barcelona Graduate School of Economics.
    4. Feldmann, Horst, 2012. "Banking deregulation around the world, 1970s to 2000s: The impact on unemployment," International Review of Economics & Finance, Elsevier, vol. 24(C), pages 26-42.
    5. Andrew J Swiston & Luis D Barrot, 2011. "The Role of Structural Reforms in Raising Economic Growth in Central America," IMF Working Papers 11/248, International Monetary Fund.
    6. Horst Feldmann, 2012. "Product Market Regulation and Labor Market Performance around the World," LABOUR, CEIS, vol. 26(3), pages 369-391, September.
    7. Feldmann, Horst, 2012. "Ethnic fractionalization and unemployment," Economics Letters, Elsevier, vol. 117(1), pages 192-195.
    8. Horst Feldmann, 2013. "Financial system sophistication and unemployment around the world," Applied Economics Letters, Taylor & Francis Journals, vol. 20(16), pages 1491-1496, November.
    9. Rabah Arezki & Marc G Quintyn & Frederik G Toscani, 2012. "Structural Reforms, IMF Programs and Capacity Building; An Empirical Investigation," IMF Working Papers 12/232, International Monetary Fund.
    10. Wilfried Kouamé & J.-A Tapsoba, 2018. "Structural Reforms and Firms’ Productivity: Evidence from Developing Countries," Post-Print hal-01723100, HAL.
    11. Andreasen, Eugenia & Valenzuela, Patricio, 2016. "Financial openness, domestic financial development and credit ratings," Finance Research Letters, Elsevier, vol. 16(C), pages 11-18.
    12. Campos, Nauro F & De Grauwe, Paul & Ji, Yuemei, 2017. "Structural Reforms, Growth and Inequality: An Overview of Theory, Measurement and Evidence," IZA Discussion Papers 11159, Institute for the Study of Labor (IZA).
    13. Feldmann, Horst, 2012. "Real interest rate and labor market performance in developing countries," Economics Letters, Elsevier, vol. 117(1), pages 200-203.
    14. Feldmann, Horst, 2015. "Banking system concentration and unemployment in developing countries," Journal of Economics and Business, Elsevier, vol. 77(C), pages 60-78.
    15. Marrazzo, Pasquale Marco & Terzi, Alessio, 2017. "Structural reform waves and economic growth," Working Paper Series 2111, European Central Bank.
    16. repec:tek:journl:v:5:y:2016:i:1:p:25-69 is not listed on IDEAS
    17. Nauro F. Campos & Paul De Grauwe & Yuemei Ji, 2017. "Structural Reforms, Growth and Inequality: An Overview of Theory, Measurement and Evidence," CESifo Working Paper Series 6812, CESifo Group Munich.
    18. Rabah Arezki & Herbert Lui & Marc G Quintyn & Frederik G Toscani, 2012. "Education Attainment in Public Administration Around the World; Evidence from a New Dataset," IMF Working Papers 12/231, International Monetary Fund.

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