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Growth, Reform indicators and Policy complementarities

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  • Macedo, Jorge Braga de
  • Martins, Joaquim Oliveira

Abstract

This paper discusses the design of structural policies by relating second-best results and the complementarity of reforms. It computes a complementarity index based on structural reform indicators compiled by the EBRD for transition countries, assuming that the run-up to EU integration corresponds to a nearly complete policy cycle. Using econometric panel estimates, the level of reforms and changes in their complementarity are found to be positively related to output growth, corrected for endogeneity, and given initial conditions and the extent of macroeconomic stabilisation.

Suggested Citation

  • Macedo, Jorge Braga de & Martins, Joaquim Oliveira, 2006. "Growth, Reform indicators and Policy complementarities," FEUNL Working Paper Series wp484, Universidade Nova de Lisboa, Faculdade de Economia.
  • Handle: RePEc:unl:unlfep:wp484
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    References listed on IDEAS

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    Cited by:

    1. Fidrmuc, Jan & Karaja, Elira, 2013. "Uncertainty, informational spillovers and policy reform: A gravity model approach," European Journal of Political Economy, Elsevier, vol. 32(C), pages 182-192.
    2. Iwasaki, Ichiro & Kumo, Kazuhiro, 2016. "Decline and Growth in Transition Economies: A Meta-Analysis," CEI Working Paper Series 2016-9, Center for Economic Institutions, Institute of Economic Research, Hitotsubashi University.
    3. Calderón, César & Fuentes, J. Rodrigo, 2012. "Removing the constraints for growth: Some guidelines," Journal of Policy Modeling, Elsevier, vol. 34(6), pages 948-970.
    4. Fabrizio Coricelli & Mathilde Maurel, 2011. "Growth and Crisis in Transition: A Comparative Perspective," Review of International Economics, Wiley Blackwell, vol. 19(1), pages 49-64, February.
    5. Bruno Amable, 2008. "Structural reforms in Europe and the (in)coherence of institutions," Post-Print halshs-00340417, HAL.
    6. Golinelli, Roberto & Rovelli, Riccardo, 2013. "Did growth and reforms increase citizens' support for the transition?," European Journal of Political Economy, Elsevier, vol. 30(C), pages 112-137.
    7. Jan Babecky & Tomas Havranek, 2013. "Structural Reforms and Growth in Transition: A Meta-Analysis," William Davidson Institute Working Papers Series wp1057, William Davidson Institute at the University of Michigan.
    8. Jan Babecky & Tomas Havranek, 2014. "Structural reforms and growth in transition," The Economics of Transition, The European Bank for Reconstruction and Development, vol. 22(1), pages 13-42, January.
    9. Csaba, László, 2009. "A szovjetológiától az új intézményi közgazdaságtanig - töprengések két évtized távlatából
      [From Sovietology to the new institutional economics - meditations from a distance of two decades]
      ," Közgazdasági Szemle (Economic Review - monthly of the Hungarian Academy of Sciences), Közgazdasági Szemle Alapítvány (Economic Review Foundation), vol. 0(9), pages 749-768.
    10. Campos, Nauro F & Coricelli, Fabrizio, 2009. "Financial Liberalization and Democracy: The Role of Reform Reversals," IZA Discussion Papers 4338, Institute of Labor Economics (IZA).
    11. Azim Raimbaev, 2011. "The case of transition economies: what institutions matter for growth?," Journal of Economics and Econometrics, Economics and Econometrics Society, vol. 54(2), pages 1-33.
    12. ROUGIER Eric, 2015. "\"The parts and the whole”: Unbundling and re-bundling institutional systems and their effect on economic development," Cahiers du GREThA 2015-12, Groupe de Recherche en Economie Théorique et Appliquée(GREThA).
    13. Hasanov, Fakhri & Huseynov, Fariz, 2013. "Bank credits and non-oil economic growth: Evidence from Azerbaijan," International Review of Economics & Finance, Elsevier, vol. 27(C), pages 597-610.
    14. César Calderón; Rodrigo Fuentes. & Rodrigo Fuentes., 2009. "Removing the Constraints for Growth: Some Guidelines Some Guidelines," Documentos de Trabajo 366, Instituto de Economia. Pontificia Universidad Católica de Chile..
    15. Azim Raimbaev, 2011. "The case of transition economies: what institutions matter for growth?," EERI Research Paper Series EERI_RP_2011_16, Economics and Econometrics Research Institute (EERI), Brussels.
    16. Nauro Campos & Fabrizio Coricelli, 2010. "Financial Liberalization, Elite Heterogeneity and Political Reform," PSE - G-MOND WORKING PAPERS halshs-00967428, HAL.
    17. Sabine D'Costa & Enrique Garcilazo & Joaquim Oliveira Martins, 2012. "The effects of nation-wide policies on regional growth," ERSA conference papers ersa12p745, European Regional Science Association.
    18. Artur Radziwill & Pawel Smietanka, 2009. "EU's Eastern Neighbours: Institutional Harmonisation and Potential Growth Bonus," CASE Network Studies and Analyses 0386, CASE-Center for Social and Economic Research.
    19. Antonio Carvalho & Matthew Cable & Rabindra Nepal & Tooraj Jamasb, 2013. "Market-Oriented Structural Reforms and Human Development: Evidence from Transition Economies," Discussion Papers Series 493, School of Economics, University of Queensland, Australia.
    20. Bicaba, Zorobabel T., 2011. "Do financial reforms complementarity and reforms sequence matter for international capital inflows?," Proceedings of the German Development Economics Conference, Berlin 2011 12, Verein für Socialpolitik, Research Committee Development Economics.
    21. Bruno Rocha, 2010. "At Different Speeds: Policy Complementarities and the Recovery from the Asian Crisis," Working Papers id:3294, eSocialSciences.

    More about this item

    JEL classification:

    • P2 - Economic Systems - - Socialist Systems and Transition Economies
    • O40 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - General
    • C33 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables - - - Models with Panel Data; Spatio-temporal Models

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