Growth, Reform Indicators and Policy Complementaries

25 Pages Posted: 2 Oct 2006 Last revised: 15 Jan 2007

See all articles by Jorge Braga de Macedo

Jorge Braga de Macedo

New University of Lisbon - Faculdade de Economia; National Bureau of Economic Research (NBER); Centre for Economic Policy Research (CEPR)

Joaquim Oliveira Martins

OECD; University Paris-Dauphine - PSL

Date Written: September 2006

Abstract

This paper discusses the design of structural policies by relating second-best results and the complementarity of reforms. It computes a complementarity index based on structural reform indicators compiled by the EBRD for transition countries, assuming that the run-up to EU integration corresponds to a nearly complete policy cycle. Using econometric panel estimates, the level of reforms and changes in their complementarity are found to be positively related to output growth, corrected for endogeneity, and given initial conditions and the extent of macroeconomic stabilisation.

Suggested Citation

Braga de Macedo, Jorge and Oliveira Martins, Joaquim, Growth, Reform Indicators and Policy Complementaries (September 2006). NBER Working Paper No. w12544, Available at SSRN: https://ssrn.com/abstract=932901

Jorge Braga de Macedo (Contact Author)

New University of Lisbon - Faculdade de Economia ( email )

Campus de Campolide
Lisboa, 1099-032
Portugal

National Bureau of Economic Research (NBER) ( email )

1050 Massachusetts Avenue
Cambridge, MA 02138
United States

Centre for Economic Policy Research (CEPR) ( email )

London
United Kingdom

Joaquim Oliveira Martins

OECD ( email )

2 Rue André Pascal
75775 Paris Cedex 16
France
+33 1 45 24 88 53 (Phone)

HOME PAGE: http://www.oecd.org/cfe

University Paris-Dauphine - PSL ( email )

PARIS
France

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