The Impact of Structural Reforms on Growth in Latin America and the Caribbean: An Empirical Estimation

CEPAL - SERIE Macroeconomia del Desarrollo No. 1

43 Pages Posted: 20 Mar 2007

See all articles by Hubert Escaith

Hubert Escaith

Aix-Marseille University (Aix-Marseille School of Economics); Bournemouth University

Samuel Morley

International Food Policy Research Institute (IFPRI)

Date Written: November 2000

Abstract

This paper presents an evaluation of the impact of structural reforms using data collected for 17 Latin American countries for the period 1970-1996. In line with the literature, the results show that growth was responsive to investment in physical as well as in human capital. Results also strongly support the positive contribution to growth of a stable macroeconomic environment. In the aggregate, the reforms did not have a significant direct impact on the growth rate, because the different individual components of the reform package have offsetting effects. Tax and capital account reforms showed a positive and lasting impact on growth. The other components, in particular trade reform, do not seem to have a robust or significant impact. The speed of reform matters, and the more rapid the process of reform, the slower the growth rate.

Keywords: Structural Reforms, Macroeconomic Analyses of Economic Development, Growth, Latin America

JEL Classification: O11, O54

Suggested Citation

Escaith, Hubert and Morley, Samuel, The Impact of Structural Reforms on Growth in Latin America and the Caribbean: An Empirical Estimation (November 2000). CEPAL - SERIE Macroeconomia del Desarrollo No. 1, Available at SSRN: https://ssrn.com/abstract=970012 or http://dx.doi.org/10.2139/ssrn.970012

Hubert Escaith (Contact Author)

Aix-Marseille University (Aix-Marseille School of Economics) ( email )

Chateau La Farge
Route des Milles
F-13290 Les Milles, Provence
France
+33(0)4 42914834 (Phone)
+33(0)4 42389585 (Fax)

HOME PAGE: http://https://www.amse-aixmarseille.fr/fr/membres/escaith

Bournemouth University ( email )

Fern Barrow
Poole BH12 5BB, Dorset BH8 8EB
United Kingdom

Samuel Morley

International Food Policy Research Institute (IFPRI) ( email )

1201 Eye St, NW,
Washington, DC 20005
United States

Do you have a job opening that you would like to promote on SSRN?

Paper statistics

Downloads
175
Abstract Views
1,081
rank
218,406
PlumX Metrics