THE EFFECTS OF STRUCTURAL REFORMS ON ECONOMIC GROWTH: EVIDENCE FROM SELECTED COUNTRIES WITHIN THE IMF-SUPPORTED PROGRAMS

Ömer Yalçınkaya and Muhammet Daştan
Additional contact information
Ömer Yalçınkaya: Atatürk University, Faculty of Economics and Administrative Sciences, Department of Economics
Muhammet Daştan: Ağrı İbrahim Çeçen University, Faculty of Economics and Administrative Sciences, Department of Economics

Ekonomski pregled, 2023, vol. 74, issue 5, 633-662

Abstract: This study investigates the effects of structural reforms in fiscal, financial, trade, and real sectors on economic growth for 56 countries within the IMF-Supported Program over the 2002-19 period. Using a novel data- base (IMF Monitoring of Fund Arrangements-MONA), it constructs newstructural reform indexes for each sector employing the Z-score approach. The present study highlights that all structural reforms except for real sec- tor reforms in all models, constructed based on the extended Cobb-Douglas production function, have a positive and statistically significant impact on economic growth. The robustness of the models is confirmed by using two different structural reform indexes for each sector and two different estimators considering cross-sectional dependence. Empirical findings point to the structural reforms being potentially key factors that provide strong long-term growth performance for countries. Hence, along with the relevant traditional policies and sufficiently developed institutions, policymakers should extend the structural reforms to lift potential growth and provide lasting economic recovery.

Keywords: Structural reforms; Economic growth; Panel data analysis. (search for similar items in EconPapers)
JEL-codes: C33 O23 O24 O40 (search for similar items in EconPapers)
Date: 2023
References: Add references at CitEc
Citations:

Downloads: (external link)
https://doi.org/10.32910/ep.74.5.1 (text/html)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:hde:epregl:v:74:y:2023:i:5:p:633-662

Ordering information: This journal article can be ordered from
Ekonomski pregled, Hrvatsko društvo ekonomista, Heinzelova 4a, 10000 Zagreb, Croatia
http://www.hde.hr/pregled_en.aspx

Access Statistics for this article

Ekonomski pregled is currently edited by Josip Tica

More articles in Ekonomski pregled from Hrvatsko društvo ekonomista (Croatian Society of Economists) Contact information at EDIRC.
Bibliographic data for series maintained by Josip Tica ().