Does Reform Work? An Econometric Examination of the Reform-Growth Puzzle

Ian Babetskii and Nauro Campos
Authors registered in the RePEc Author Service: Jan Babecký

Abstract: Despite the many benefits associated with structural reforms, the literature has thus far failed to establish a positive significant effect of reforms on growth. Using data from 43 econometric studies, we show that one third of the coefficients (of reform on growth) are positive and significant, another third are negative and significant, and the final third are not statistically significant. In trying to understand this remarkable variation, we find that the measurement of reform and controlling for institutions and initial conditions are the main factors in decreasing the probability of reporting a significant and positive effect of reform on growth.

Keywords: Growth; liberalisation; structural reforms; transition. (search for similar items in EconPapers)
JEL-codes: C49 O11 P21 (search for similar items in EconPapers)
Date: 2007-11
New Economics Papers: this item is included in nep-hap, nep-lab and nep-tra
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (16)

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https://www.cnb.cz/export/sites/cnb/en/economic-re ... wp/cnbwp_2007_02.pdf

Related works:
Working Paper: Does Reform Work? An Econometric Examination of the Reform-Growth Puzzle (2007)
Working Paper: Does Reform Work? An Econometric Examination of the Reform-Growth Puzzle (2007)
Working Paper: Does Reform Work? An Econometric Examination of the Reform-Growth Puzzle (2007)
Working Paper: Does reform work? An econometric examination of the reform-growth puzzle (2007)
Working Paper: Does Reform Work? An Econometric Examination of the Reform-Growth Puzzle (2006)
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