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Structural reforms and growth in developing countries

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  • Tolga Aksoy

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.

Suggested Citation

  • Tolga Aksoy, 2019. "Structural reforms and growth in developing countries," Journal of Economic Policy Reform, Taylor and Francis Journals, vol. 22(4), pages 325-350, October.
    • Handle: RePEc:taf:jecprf:v:22:y:2019:i:4:p:325-350
    DOI: 10.1080/17487870.2018.1424629
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