Policy Complementarities and the Washington Consensus

20 Pages Posted: 15 Feb 2006

See all articles by Jahangir Aziz

Jahangir Aziz

International Monetary Fund (IMF) - Asia and Pacific Department

Robert Wescott

International Monetary Fund (IMF) - European Department

Date Written: September 1997

Abstract

While economists continue to debate whether particular economic policies, such as those referred to in Willliamson`s (1993) "Washington Consensus," can spur growth in developing countries, this paper demonstrates that it is combinations of policies that are more critical for growth. Policy complementarity refers to the mutually reinforcing benefits of policies that create an environment that is conducive to investment and growth. Quantitative measures of policy complementarity are developed, and the study shows empirically, through both an outcomes-based probability framework and a standard regression analysis, that these complementarities are significant and robust in explaining growth outcomes over the period 1985-95.

Keywords: economic growth, development policies, complementarities

JEL Classification: O38

Suggested Citation

Aziz, Jahangir and Wescott, Robert, Policy Complementarities and the Washington Consensus (September 1997). IMF Working Paper, Vol. , pp. 1-20, 1997. Available at SSRN: https://ssrn.com/abstract=882655

Jahangir Aziz (Contact Author)

International Monetary Fund (IMF) - Asia and Pacific Department ( email )

700 19th Street NW
Washington, DC 20431
United States

Robert Wescott

International Monetary Fund (IMF) - European Department ( email )

700 19th St. NW
Washington, DC 20431
United States

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