The Macroeconomic Effects of Structural Reforms in Latin America and the Caribbean
IMF Working Papers, September 25, 2020
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- The Macroeconomic Effects of Structural Reforms in Latin America and the Caribbean
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Bibliographic details
- Authors: Antonio David, Takuji Komatsuzaki, Samuel Pienknagura
- Published: September 25, 2020
- Series: IMF Working Papers
- DOI: https://doi.org/10.5089/9781513557632.001
Summary findings
- Large changes in the reform index have positive effects on GDP and employment that reach 2 percent after 5 years.
- Reforms boost investment, exports, and imports.
- Reforms reduce export concentration and favor tradable sectors.
- Effects of reforms have not been uniform across different segments of the population.
- Country case studies using the synthetic control method point to heterogeneous effects of reforms on income per capita.
Quantitative impacts and key statistics
- GDP and employment effects: reach 2 percent after 5 years.
- Publication length: 32 pages.
- Series and identifiers:
- Working Paper No. 2020/195
- Issue: 195
- Volume: 2020
- DOI: https://doi.org/10.5089/9781513557632.001
- ISBN: 9781513557632
- ISSN: 1018-5941
- Publication date: September 25, 2020
Economic channels and outcomes
- Investment: reforms are associated with higher investment.
- Trade: reforms increase exports and imports and reduce export concentration.
- Sectoral composition: reforms favor tradable sectors.
- Productivity: study uses dataset constructed by Alesina et al. (2020) and addresses total factor productivity and product market reforms.
Distributional heterogeneity
- The macroeconomic gains from reforms are uneven across population segments.
- Country-level evidence (synthetic control method) shows heterogeneous effects on income per capita, indicating varied national experiences.
Policy implications and recommendations
- Accompanying policies are needed to ensure that structural reforms promote inclusive growth.
- Consideration of distributional impacts should be integrated into reform design and sequencing to address uneven effects across population segments.
Implied source: IMF Working Paper "The Macroeconomic Effects of Structural Reforms in Latin America and the Caribbean" (Working Paper No. 2020/195) by Antonio David, Takuji Komatsuzaki, and Samuel Pienknagura, September 25, 2020.
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