Structural reforms and growth in developing countries(1)

Aksoy T.

JOURNAL OF ECONOMIC POLICY REFORM, vol.22, pp.325-350, 2019 (SSCI) identifier identifier

  • Publication Type: Article / Article
  • Volume: 22
  • Publication Date: 2019
  • Doi Number: 10.1080/17487870.2018.1424629
  • Journal Name: JOURNAL OF ECONOMIC POLICY REFORM
  • Journal Indexes: Social Sciences Citation Index (SSCI), Scopus
  • Page Numbers: pp.325-350
  • Keywords: growth, structural reforms ? current account, trade, capital account, domestic finance, Pooled Mean Group Estimator, CAPITAL ACCOUNT LIBERALIZATION, FINANCIAL LIBERALIZATION, TRADE LIBERALIZATION, ECONOMIC-GROWTH, RUN GAIN
  • Yıldız Technical University Affiliated: Yes

Abstract

This paper investigates the effects of structural reforms on real per capita GDP in the short and long-run by employing Pooled Mean Group approach. I find that during the period 1973?2006, there is a positive long-run relationship between international trade reform, financial (capital account, and domestic finance) reforms and real per capita GDP. My results also indicate that in the short-run, financially more open economies suffer more from international trade and domestic financial reforms. More importantly, the adverse effects of reforms in the short-run can be mitigated by improving property rights and contract enforcement.