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

        with Jan Babecký
 

        Published in Journal of Comparative Economics 39 (2), 140-158, June 2011 (PDF)
 

        There is still an intense controversy about the empirical support for the effects of
        structural reforms on economic growth. This paper uses data from 46 studies and
        more than 500 estimates to (a) document the variation in these estimated effects
        and (b) identify the main factors that help explain it. We put forward evidence,
        based on the general-to-specific method, suggesting that the estimated long-run
        effects of reform on growth are normally distributed, and that accounting for
        institutions and initial conditions (trade liberalization) are principal factors in
        decreasing (increasing) the probability of reporting significant and positive effects
        of reform on growth.

         Download revised version here

         Download working paper version:         CEPR DP 6215                  IZA DP 2638
 
 

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