The Effects Of Structural Reforms On Economic Growth: Evidence From Selected Countries Within The Imf-Supported Programs Ucinci Strukturnih Reformi Na Gospodarski Rast: Dokaziiz Odabranih Zemalja Unutar Programa Koji Podrzava Mmf

Creative Commons License

YALÇINKAYA Ö., Dastan M.

Ekonomski Pregled, cilt.74, sa.5, ss.633-662, 2023 (ESCI) identifier identifier

  • Yayın Türü: Makale / Tam Makale
  • Cilt numarası: 74 Sayı: 5
  • Basım Tarihi: 2023
  • Doi Numarası: 10.32910/ep.74.5.1
  • Dergi Adı: Ekonomski Pregled
  • Derginin Tarandığı İndeksler: Emerging Sources Citation Index (ESCI), Scopus, International Bibliography of Social Sciences, EconLit, Historical Abstracts
  • Sayfa Sayıları: ss.633-662
  • Anahtar Kelimeler: Economic growth, Panel data analysis, Structural reforms
  • Atatürk Üniversitesi Adresli: Evet

Özet

This study investigates the effects of structural reforms in fiscal, financial, trade, and real sectors on economic growth for 56 countries within the IMF-Supported Program over the 2002-19 period. Using a novel database (IMF Monitoring of Fund Arrangements-MONA), it constructs new structural reform indexes for each sector employing the Z-score approach. The present study highlights that all structural reforms except for real sector reforms in all models, constructed based on the extended Cobb-Douglas production function, have a positive and statistically significant impact on economic growth. The robustness of the models is confirmed by using two different structural reform indexes for each sector and two different estimators considering cross-sectional dependence. Empirical findings point to the structural reforms being potentially key factors that provide strong long-term growth performance for countries. Hence, along with the relevant traditional policies and sufficiently developed institutions, policymakers should extend the structural reforms to lift potential growth and provide lasting economic recovery.