The output effects of reforms: : empirical evidence from 90 countries

• Christos, Mavrogiannis ^[1] ; Athanasios, Tagkalakis ^[1]
  1. [1] University of Patras

     University of Patras

     Dimos Patras, Grecia

     
• Localización: Economics and Business Letters, ISSN-e 2254-4380, Vol. 14, Nº. 3, 2025, págs. 126-133
• Idioma: inglés
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• Resumen

  • Utilizing a new annual dataset of structural reforms covering 90 countries from 1973 to 2014, we investigate the long-term effects of major reform shocks on growth. By applying the local projection method and addressing reform endogeneity with the Augmented Inverse Probability Weighted estimator, we find that reforms have a positive long-term effect on growth. Advanced economies reap the greatest benefits of reforms in the long term, while emerging market economies benefit in the short to medium term. Low-income countries enjoy only limited positive effects from reforms.