 Are Complementary Reforms a 'Luxury' for Developing Countries?Jorge Braga de Macedo, Bruno Rocha and Joaquim Oliveira Martins Post-Print from HAL Abstract: This paper investigates the impact of complementarity reforms on growth and how it depends on GDP per capita. Based on reform data for six policy areas compiled from various sources during the period 1994-2006 for over 100 countries, we compute composite indicators of reform level and complementarity. We provide qualitative justification for the existence of pair-wise complementarities among policy areas. We then use cross-section and panel data estimates to test the effect of reform level and complementarity on GDP per capita growth. We found reforms to be positively related and their dispersion (or the inverse of complementarity) negatively related to growth, controlling for initial conditions, monetary stability and other structural and institutional variables, as well as endogeneity of reform level and complementarity. We show that the effect of policy complementarity is a stronger condition for sustainable growth in developing than in advanced countries, to conclude that complementary reforms are not a 'luxury' for developing countries. Keywords: Developing Countries; GDP; Growth; Policy (search for similar items in EconPapers) Published in Journal of Comparative Economics, 2014, 42 (2), ⟨10.1016/j.jce.2013.06.003⟩ There are no downloads for this item, see the EconPapers FAQ for hints about obtaining it. Related works: Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text Persistent link: https://EconPapers.repec.org/RePEc:hal:journl:hal-01618204 DOI: 10.1016/j.jce.2013.06.003 Access Statistics for this paper More papers in Post-Print from HAL |
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