Growth and structural reforms: A new assessment
Martin Schindler () and
Thierry Tressel ()
Journal of International Economics, 2013, vol. 89, issue 2, 347-356
This paper presents a simultaneous assessment of the relationship between economic performance and three groups of economic reforms: domestic finance, trade, and the capital account. Domestic financial reforms and trade reforms are robustly associated with economic growth, but only in middle-income countries. In contrast, there is no evidence of a systematic positive relationship between capital account liberalization and economic growth. Moreover, the effect of domestic financial reforms on economic growth in middle-income countries is accounted for by improvements in measured aggregate TFP growth, not by higher aggregate investment. Additional analysis suggests that sufficiently developed property rights are a precondition for reaping the benefits of financial and trade reforms. Our results are robust to endogeneity bias and a number of alternative specifications.
Keywords: Economic growth; Liberalization; Domestic finance; Trade; Capital account (search for similar items in EconPapers)
JEL-codes: F3 G28 O24 O43 (search for similar items in EconPapers)
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Working Paper: Growth and Structural Reforms; A New Assessment (2009)
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Persistent link: https://EconPapers.repec.org/RePEc:eee:inecon:v:89:y:2013:i:2:p:347-356
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