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

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  • Zia Qureshi
  • Jose L. Diaz-Sanchez
  • Aristomene Varoudakis

Abstract

This article 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.

Suggested Citation

  • Zia Qureshi & Jose L. Diaz-Sanchez & Aristomene Varoudakis, 2015. "The Post-crisis Growth Slowdown in Emerging Economies and the Role of Structural Reforms," Global Journal of Emerging Market Economies, Emerging Markets Forum, vol. 7(2), pages 179-200, May.
    • Handle: RePEc:sae:emeeco:v:7:y:2015:i:2:p:179-200
    DOI: 10.1177/0974910115574056
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    Cited by:

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    2. M. Ayhan Kose & Franziska Ohnsorge, 2023. "Slowing Growth: More Than a Rough Patch," CAMA Working Papers 2023-23, Centre for Applied Macroeconomic Analysis, Crawford School of Public Policy, The Australian National University.
    3. Pitterle, Ingo & Haufler, Fabio & Hong, Pingfan, 2015. "Assessing emerging markets’ vulnerability to financial crisis," Journal of Policy Modeling, Elsevier, vol. 37(3), pages 484-500.
    4. Dabús, Carlos & Tohmé, Fernando & Caraballo, M. Ángeles, 2016. "A middle income trap in a small open economy: Modeling the Argentinean case," Economic Modelling, Elsevier, vol. 53(C), pages 436-444.
    5. Dincer, Hasan & Hacioglu, Umit & Tatoglu, Ekrem & Delen, Dursun, 2019. "Developing a hybrid analytics approach to measure the efficiency of deposit banks," Journal of Business Research, Elsevier, vol. 104(C), pages 131-145.
    6. World Bank Group, 2017. "Global Economic Prospects, January 2017," World Bank Publications - Books, The World Bank Group, number 25823.
    7. Strauss, Ilan & Yang, Jangho, 2021. "Slowing investment rates in developing economies: Evidence from a Bayesian hierarchical model," International Review of Financial Analysis, Elsevier, vol. 77(C).

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