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Structural Reforms and Economic Growth: A Meta-Analysis

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  • Jan Babecky
  • Tomas Havranek

Abstract

This paper evaluates the impact of structural reforms, mainly liberalization and privatization, on economic growth. To provide stylized facts on how such reforms worked in the past, we quantitatively review 60 studies that estimate the relation between reforms and growth empirically. These studies examine structural reforms carried out in 26 transition and post-transition countries around the world. Our results show that a typical reform caused substantial costs in the short run, but had strong positive effects on long-run growth. Reforms focused on external liberalization proved to be more beneficial than other types of reform in both the short and long run. The findings hold even after correction for publication bias and misspecifications present in some primary studies.

Suggested Citation

  • Jan Babecky & Tomas Havranek, 2013. "Structural Reforms and Economic Growth: A Meta-Analysis," Working Papers 2013/08, Czech National Bank.
    • Handle: RePEc:cnb:wpaper:2013/08
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    Cited by:

    1. Adam KUČERA & Aleš MARŠÁL, 2015. "Cost And Benefits Of Czech Economic Transformation: Macroeconomic Approach," Europolity – Continuity and Change in European Governance - New Series, Department of International Relations and European Integration, National University of Political Studies and Public Administration, vol. 9(1), pages 1-23.
    2. repec:cnb:ocpubv:as14 is not listed on IDEAS
    3. repec:cnb:ocpubv:as13 is not listed on IDEAS

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    More about this item

    Keywords

    Bayesian model averaging; growth; meta-analysis; structural reforms; transition economies.;
    All these keywords.

    JEL classification:

    • C83 - Mathematical and Quantitative Methods - - Data Collection and Data Estimation Methodology; Computer Programs - - - Survey Methods; Sampling Methods
    • O11 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Macroeconomic Analyses of Economic Development
    • P21 - Political Economy and Comparative Economic Systems - - Socialist and Transition Economies - - - Planning, Coordination, and Reform

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