Impact of macro-structural reforms on the productivity growth of regions: distance to the frontier matters

Sabine D’Costa, José Enrique Garcilazo and Joaquim Oliveira Martins

No 86, Working Papers from Queen Mary, University of London, School of Business and Management, Centre for Globalisation Research

Abstract: Using a panel of 265 regions from 24 OECD countries from 1997 to 2007, we explore the impact of nation-wide macroeconomic and structural policies on the productivity growth of subnational regions. We find that average relationships between nation-wide policies and the growth of regions can hide strong differentiated effects according to the distance to the frontier: relaxing employment protection legislation on temporary contracts, lowering barriers to trade and investment as well as increasing trade openness enhances productivity growth in lagging regions, whereas reducing barriers to entrepreneurship or higher levels of government debt has a positive effect on regions that are closer to the productivity frontier.

Keywords: structural reforms; regional growth; lagging regions (search for similar items in EconPapers)
JEL-codes: O18 R11 R58 (search for similar items in EconPapers)
Date: 2017-12
New Economics Papers: this item is included in nep-cse, nep-eff, nep-geo and nep-sbm
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http://cgr.sbm.qmul.ac.uk/CGRWP86.pdf

Related works:
Journal Article: Impact of macro‐structural reforms on the productivity growth of regions: Distance to the frontier matters (2019)
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Persistent link: https://EconPapers.repec.org/RePEc:cgs:wpaper:86

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