Structural Reform and Growth: What Really Matters? Evidence from the Caribbean
IMF Working Papers, April 7, 2016
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- Structural Reform and Growth: What Really Matters? Evidence from the Caribbean
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Bibliographic details
- Authors: Kevin Greenidge, Meredith A McIntyre, Hanlei Yun
- Published: April 7, 2016
- Series: IMF Working Papers
- DOI: https://doi.org/10.5089/9781484321812.001
Scope and reform areas reviewed
- Timeframe context: Since the 1980’s with the introduction of IMF/WB adjustment programs structural reforms have been a core part of the reform agenda in the Caribbean.
- Package of structural reforms analyzed:
- Trade liberalization
- Financial liberalization
- Tax policy (including Consumption taxes, Personal income tax, Value-added tax, Tariffs)
Methodology
- Empirical approach:
- Used a set of reform indices to gauge both short-run and long-run effects of structural reforms on growth.
- Controlled for other possible growth determinants using panel dynamic OLS estimation.
- Institutional analysis:
- Recognizing the importance of institutions to growth, the empirical analysis also analyzed the impact of institutional quality on growth for a sample of small states including the Caribbean.
Key findings
- Timing of benefits:
- The benefits of structural reforms are only seen over the long-term.
- Institutional quality:
- Strengthening institutional quality is an important determinant of growth in the sample of small states including the Caribbean.
- Overall conclusion:
- To reinvigorate growth the reform effort needs to be revived and include greater attention to strengthening institutional quality.
Policy implications and recommendations
- Revive and sustain structural reform efforts across trade, financial, and tax policy areas to realize long-term growth benefits.
- Place greater emphasis on strengthening institutional quality alongside structural reforms to enhance growth outcomes.
Publication and metadata
- Authors: Kevin Greenidge, Meredith A McIntyre, Hanlei Yun
- Date: April 7, 2016
- Series: IMF Working Papers, Working Paper No. 2016/082
- Issue: 082
- Volume: 2016
- Pages: 32
- DOI: https://doi.org/10.5089/9781484321812.001
- ISBN: 9781484321812
- ISSN: 1018-5941
Source: Structural Reform and Growth: What Really Matters? Evidence from the Caribbean (IMF Working Paper).