IDEAS home Printed from https://ideas.repec.org/p/unl/unlfep/wp484.html
   My bibliography  Save this paper

Growth, reform indicators and policy complementarities

Author

Listed:
  • Jorge Braga de Macedo
  • Joaquim Oliveira Martins

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

  • Jorge Braga de Macedo & Joaquim Oliveira Martins, 2006. "Growth, reform indicators and policy complementarities," Nova SBE Working Paper Series wp484, Universidade Nova de Lisboa, Nova School of Business and Economics.
  • Handle: RePEc:unl:unlfep:wp484
    as

    Download full text from publisher

    File URL: https://run.unl.pt/bitstream/10362/82989/1/WP484.pdf
    Download Restriction: no
    ---><---

    Other versions of this item:

    References listed on IDEAS

    as
    1. Arellano, Manuel & Bover, Olympia, 1995. "Another look at the instrumental variable estimation of error-components models," Journal of Econometrics, Elsevier, vol. 68(1), pages 29-51, July.
    2. Rabah Amir, 2005. "Supermodularity and Complementarity in Economics: An Elementary Survey," Southern Economic Journal, John Wiley & Sons, vol. 71(3), pages 636-660, January.
    3. Kawamata, Kunio, 1974. "Price Distortion and Potential Welfare," Econometrica, Econometric Society, vol. 42(3), pages 435-460, May.
    4. Olivier Blanchard & Francesco Giavazzi, 2003. "Macroeconomic Effects of Regulation and Deregulation in Goods and Labor Markets," The Quarterly Journal of Economics, Oxford University Press, vol. 118(3), pages 879-907.
    5. Michela Nardo & Michaela Saisana & Andrea Saltelli & Stefano Tarantola & Anders Hoffman & Enrico Giovannini, 2005. "Handbook on Constructing Composite Indicators: Methodology and User Guide," OECD Statistics Working Papers 2005/3, OECD Publishing.
    6. Rabah Amir, 2005. "Supermodularity and Complementarity in Economics: An Elementary Survey," Southern Economic Journal, John Wiley & Sons, vol. 71(3), pages 636-660, January.
    7. Dani Rodrik, 2006. "Goodbye Washington Consensus, Hello Washington Confusion? A Review of the World Bank's Economic Growth in the 1990s: Learning from a Decade of Reform," Journal of Economic Literature, American Economic Association, vol. 44(4), pages 973-987, December.
    8. R. G. Lipsey & Kelvin Lancaster, 1956. "The General Theory of Second Best," Review of Economic Studies, Oxford University Press, vol. 24(1), pages 11-32.
    9. Daron Acemoglu, 2007. "Equilibrium Bias of Technology," Econometrica, Econometric Society, vol. 75(5), pages 1371-1409, September.
    10. Amable, Bruno, 2003. "The Diversity of Modern Capitalism," OUP Catalogue, Oxford University Press, number 9780199261147.
    11. Ricardo Hausmann & Bailey Klinger, 2008. "Growth Diagnostics: Perú," Research Department Publications 2005, Inter-American Development Bank, Research Department.
    12. Milgrom, Paul & Roberts, John, 1995. "Complementarities and fit strategy, structure, and organizational change in manufacturing," Journal of Accounting and Economics, Elsevier, vol. 19(2-3), pages 179-208, April.
    13. Ricardo Hausmann & Bailey Klinger, 2008. "Growth Diagnostics: Perú," Research Department Publications 2005, Inter-American Development Bank, Research Department.
    14. Milgrom, Paul & Roberts, John, 1990. "The Economics of Modern Manufacturing: Technology, Strategy, and Organization," American Economic Review, American Economic Association, vol. 80(3), pages 511-528, June.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. 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.
    2. Bruno Amable, 2009. "Structural reforms in Europe and the (in)coherence of institutions," Oxford Review of Economic Policy, Oxford University Press, vol. 25(1), pages 17-39, Spring.
    3. 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.
    4. 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.
    5. 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.
    6. 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.
    7. Campos, Nauro F. & Coricelli, Fabrizio, 2009. "Financial Liberalization and Democracy: The Role of Reform Reversals," IZA Discussion Papers 4338, Institute of Labor Economics (IZA).
    8. Nauro Campos & Fabrizio Coricelli, 2010. "Financial Liberalization, Elite Heterogeneity and Political Reform," Université Paris1 Panthéon-Sorbonne (Post-Print and Working Papers) halshs-00967428, HAL.
    9. 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.
    10. ROUGIER Eric, 2015. ""The parts and the whole”: Unbundling and re-bundling institutional systems and their effect on economic development," Cahiers du GREThA (2007-2019) 2015-12, Groupe de Recherche en Economie Théorique et Appliquée (GREThA).
    11. Can Wang & Jie Lin & Wenjia Cai & ZhongXiang Zhang, 2013. "Policies and Practices of Low Carbon City Development in China," Energy & Environment, , vol. 24(7-8), pages 1347-1372, December.
    12. 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..
    13. 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.
    14. 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.
    15. Jorge Braga de Macedo & Luis Pereira & Afonso Reis, 2009. "Comparing Exchange Market Pressure across Five African Countries," Open Economies Review, Springer, vol. 20(5), pages 645-682, November.
    16. 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.
    17. 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.
    18. Bruno Rocha, 2010. "At Different Speeds: Policy Complementarities and the Recovery from the Asian Crisis," Working Papers id:3294, eSocialSciences.
    19. Calderón, César & Fuentes, J. Rodrigo, 2012. "Removing the constraints for growth: Some guidelines," Journal of Policy Modeling, Elsevier, vol. 34(6), pages 948-970.
    20. 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.
    21. 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.
    22. 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.
    23. 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.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. repec:dau:papers:123456789/7960 is not listed on IDEAS
    2. Braga de Macedo, Jorge & Oliveira Martins, Joaquim & Rocha, Bruno, 2014. "Are complementary reforms a “luxury” for developing countries?," Journal of Comparative Economics, Elsevier, vol. 42(2), pages 417-435.
    3. Drewianka, Scott, 2006. "A generalized model of commitment," Mathematical Social Sciences, Elsevier, vol. 52(3), pages 233-251, December.
    4. Lee, Keun & Kim, Byung-Yeon & Park, Young-Yoon & Sanidas, Elias, 2013. "Big businesses and economic growth: Identifying a binding constraint for growth with country panel analysis," Journal of Comparative Economics, Elsevier, vol. 41(2), pages 561-582.
    5. Luís Cabral & Gonçalo Pacheco-de-Almeida, 2019. "Alliance Formation and Firm Value," Management Science, INFORMS, vol. 65(2), pages 879-895, February.
    6. Finn Christensen, 2019. "Comparative statics and heterogeneity," Economic Theory, Springer;Society for the Advancement of Economic Theory (SAET), vol. 67(3), pages 665-702, April.
    7. Prasanna Tambe, 2014. "Big Data Investment, Skills, and Firm Value," Management Science, INFORMS, vol. 60(6), pages 1452-1469, June.
    8. Bah, El-hadj M. & Cooper, Geoff, 2012. "Constraints to the Growth of Small Firms in Northern Myanmar," MPRA Paper 39819, University Library of Munich, Germany.
    9. Georg Graevenitz & Stefan Wagner & Dietmar Harhoff, 2013. "Incidence and Growth of Patent Thickets: The Impact of Technological Opportunities and Complexity," Journal of Industrial Economics, Wiley Blackwell, vol. 61(3), pages 521-563, September.
    10. Robert Boyer, 2006. "Employment and decent work in the era of flexicurity," PSE Working Papers halshs-00590452, HAL.
    11. Rosa Bernardini Papalia & Silvia Bertarelli & Susanna Mancinelli, 2018. "Innovation, complementarity, and exporting. Evidence from German manufacturing firms," International Review of Applied Economics, Taylor & Francis Journals, vol. 32(1), pages 3-38, January.
    12. Katja Kalkschmied & Joern Kleinert, 2019. "(Mis)Matches of Institutions: The EU and Varieties of Capitalism," Graz Economics Papers 2019-01, University of Graz, Department of Economics.
    13. Huynh, Kim P. & Jacho-Chávez, David T., 2009. "Growth and governance: A nonparametric analysis," Journal of Comparative Economics, Elsevier, vol. 37(1), pages 121-143, March.
    14. Peter Arendorf Bache & Anders Laugesen, 2013. "Monotone Comparative Statics for the Industry Composition," Economics Working Papers 2013-10, Department of Economics and Business Economics, Aarhus University.
    15. Jorge Braga De Macedo & Joaquim Oliveira Martins, 2008. "Growth, reform indicators and policy complementarities1," The Economics of Transition, The European Bank for Reconstruction and Development, vol. 16(2), pages 141-164, April.
    16. Bruno Rocha, 2010. "At Different Speeds: Policy Complementarities and the Recovery from the Asian Crisis," Working Papers id:3294, eSocialSciences.
    17. Seunghwan Oh & Dongnyok Shim & Daeho Lee, 2017. "Evaluation Of Complementarity Effect Of Innovation Policies: Venture Certification And Inno-Biz Certification In Korea," The Singapore Economic Review (SER), World Scientific Publishing Co. Pte. Ltd., vol. 65(02), pages 385-402, February.
    18. Bah, El-hadj M. & Cooper, Geoff, 2015. "Constraints to the growth of small firms in Northwest Myanmar," Journal of Asian Economics, Elsevier, vol. 39(C), pages 108-125.
    19. Nina Biljanovska & Mr. Damiano Sandri, 2018. "Structural Reform Priorities for Brazil," IMF Working Papers 2018/224, International Monetary Fund.
    20. Felipe A. Csaszar & Nicolaj Siggelkow, 2010. "How Much to Copy? Determinants of Effective Imitation Breadth," Organization Science, INFORMS, vol. 21(3), pages 661-676, June.
    21. Phillip LeBel, 2008. "Managing Risk in Africa Through Institutional Reform," Atlantic Economic Journal, Springer;International Atlantic Economic Society, vol. 36(2), pages 165-181, June.

    More about this item

    JEL classification:

    • P2 - Political Economy and Comparative Economic Systems - - Socialist 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

    NEP fields

    This paper has been announced in the following NEP Reports:

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:unl:unlfep:wp484. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Susana Lopes (email available below). General contact details of provider: https://edirc.repec.org/data/feunlpt.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.