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Policy Complementarities and the Washington Consensus

Author

Listed:
  • Jahangir Aziz

    (International Monetary Fund)

  • Robert Wescott

    (International Monetary Fund)

Abstract

While economists continue to debate whether individual economic policies, such as those contained in Willliamson's (1993) Washington Consensus, can help to spur growth in developing countries, this paper demonstrates that it is groups of policies that are more critical for growth. Policy complementarity is defined as a set of mutually reinforcing policies that create an environment that is conducive to investment and growth. Quantitative measures of policy complementarity are developed, and the study shows empirically, both through an outcomes-based probability framework and standard regression analysis, that these complementarities are significant and robust in explaining growth outcomes over the period 1985-95.

Suggested Citation

  • Jahangir Aziz & Robert Wescott, 1999. "Policy Complementarities and the Washington Consensus," Development and Comp Systems 9902002, University Library of Munich, Germany.
    • Handle: RePEc:wpa:wuwpdc:9902002
    Note: Type of Document - Tex/WordPerfect/Handwritten; prepared on IBM PC - PC; to print on HP/; pages: 27 ; figures: included
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    References listed on IDEAS

    as
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    More about this item

    Keywords

    economic growth; development policies; complementarities;
    All these keywords.

    JEL classification:

    • O38 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Government Policy

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