Open AccessGrowth, reform indicators and policy complementarities 1
Author(s) -
De Macedo Jorge Braga,
Martins Joaquim Oliveira
Publication year - 2008
Publication title -
economics of transition
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.351
H-Index - 51
eISSN - 1468-0351
pISSN - 0967-0750
DOI - 10.1111/j.1468-0351.2008.00323.x
Subject(s) - complementarity (molecular biology) , endogeneity , economics , transition countries , macroeconomics , index (typography) , economic system , econometrics , international economics , genetics , world wide web , computer science , biology
In order to assess the growth implications of policy complementarities, this paper applies second‐best results to reform indicators. During the transition from central planning to EU integration, which corresponds to a policy cycle, a complementarity index based on structural indicators compiled by the European Bank for Reconstruction and Development (EBRD) decreases and then increases while the level of reforms tends to rise throughout. Corrected for initial conditions, the extent of macroeconomic stabilization and endogeneity, the level of reforms and changes in their complementarity are found to be positively related to output growth. The study uses panel data for 27 countries between 1989 and 2004.