The Post-Crisis Growth Slowdown in Emerging Economies and the Role of Structural Reforms

25 Pages Posted: 20 Apr 2016

Date Written: November 1, 2014

Abstract

This paper constructs indicators of structural bottlenecks arising from barriers to open markets, obstacles to business operations, and constraints to access to finance. Empirical evidence from a sample of 30 emerging economies indicates that barriers to open markets and access to finance are significantly associated with differences in total factor productivity growth in the post-global financial crisis period compared with the pre-crisis period -- with countries with fewer barriers showing stronger recovery and resilience. Barriers to access to finance are also associated with differences in the performance of private investment. Reforms to improve the policy framework in these areas, up to the level of the best-ranking countries, could offset the recently observed growth slowdown in emerging economies. These reforms would revitalize potential growth and mitigate the risks from external shocks associated with the global environment in the transition from the global financial crisis.

Keywords: Economic Policy, Institutions and Governance

Suggested Citation

Qureshi, Zia and Diaz Sanchez, Jose Luis and Varoudakis, Aristomene, The Post-Crisis Growth Slowdown in Emerging Economies and the Role of Structural Reforms (November 1, 2014). World Bank Policy Research Working Paper No. 7107, Available at SSRN: https://ssrn.com/abstract=2524161

Zia Qureshi

World Bank ( email )

1818 H Street, N.W.
Washington, DC 20433
United States

Jose Luis Diaz Sanchez

World Bank ( email )

1818 H Street, NW
Washington, DC 20433
United States

Aristomene Varoudakis

World Bank ( email )

1818 H Street, NW
Washington, DC 20433
United States

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