Growth and Structural Reforms: A New Assessment

By L. Christiansen, T. Tressel, M. Schindler. Social Science Research Network, 2009

122 citations recorded by the source corpus.

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.

Subfields: Economics and Econometrics, Finance

View Paper: https://www.semanticscholar.org/paper/c63e44c183440d7023e15a96a83276ff8aaf0480

How researchers see this paper

The researchers whose trusted networks rank it highest, strongest advocate first. Every researcher gets a different order.

In Economics and Econometrics

1. Davide Furceri
2. Marcos Poplawski-Ribeiro
3. R. Duval
4. A. Kudrin
5. E. Gurvich

In Finance

1. Marcos Poplawski-Ribeiro
2. R. Duval
3. Davide Furceri

Citations in the corpus

• Gone with the Headwinds: Global Productivity (2017, background): “Indeed, past research has found positive TFP and growth impacts of these reforms, while also highlighting that these effects vary across types of reforms and depends on the overall institutional environment (Christiansen, Schindler, and Tressel 2013; Prati, Onorato, and Papageorgiou 2013).”
• A new growth model for the Russian economy (2014, background): “For example, it is impossible to achieve a positive effect of reforms without adequate protection of property (Christiansen et al., 2009).”