Publication detail

Structural Reforms and Growth in Transition: A Meta-Analysis

Author(s): doc. PhDr. Tomáš Havránek Ph.D., Jan Babecký
Type: IES Working Papers
Year: 2013
Number: 14
ISSN / ISBN:
Published in: IES Working Papers 14/2013
Publishing place: Prague
Keywords: Structural reforms, growth, transition economies, meta-analysis, Bayesian model averaging
JEL codes: C83, O11, P21
Suggested Citation: Babecký, J., Havránek, T. (2013). “Structural Reforms and Growth in Transition: A Meta- Analysis” IES Working Paper 14/2013. IES FSV. Charles University.
Abstract: The present fiscal difficulties of many countries amplify the call for structural
reforms. To provide stylized facts on how reforms worked in the past, we
quantitatively review 60 studies estimating the relation between reforms and
growth. These studies examine structural reforms carried out in 26 transition
countries around the world. Our results show that an average reform caused
substantial costs in the short run, but had strong positive effects on long-run
growth. Reforms focused on external liberalization proved to be more beneficial
than others in both the short and long run. The findings hold even after correction
for publication bias and misspecifications present in some primary studies.
Downloadable: WP_2013_14_Babecky_Havranek

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