Impact of Structural Reformson Productivity Growth in Industrial Countries
IMF Working Papers, January 1, 2002
Source details
- Canonical URL
- Impact of Structural Reformson Productivity Growth in Industrial Countries
Other formats
Bibliographic details
- Authors: Ranil M Salgado
- Published: January 1, 2002
- Series: IMF Working Papers
- DOI: https://doi.org/10.5089/9781451842708.001
Summary and research question
- This paper investigates the impact of structural reforms on productivity growth.
- Method: panel analysis of 20 OECD countries.
- Time horizons considered: short run and long run.
Key findings
- Short-run effects:
- The impact of structural reforms on productivity growth may be weak or negative in the short run.
- Possible reasons cited: adjustment costs and the need for firms to learn how to operate in a less regulated and more competitive environment.
- Long-run effects:
- Structural reforms are found to have significantly positive effects on productivity growth in the long run.
Subjects and keywords (as listed)
- Subjects: Commodity markets, Financial markets, Labor, Macrostructural analysis, Production, Productivity, Structural reforms, Total factor productivity.
- Keywords: average cost, Commodity markets, Growth, labor productivity growth, log productivity level, markup, price-average cost markup, product market, product market reform, Product markets, Productivity, productivity leader, Structural reforms, Total factor productivity, Trade, WP.
Policy implications (implied by findings)
- Short-term considerations:
- Policymakers should anticipate and manage adjustment costs when implementing structural reforms.
- Support measures may be needed to help firms adapt to increased competition and less regulation.
- Long-term objective:
- Structural reforms can be expected to contribute positively to productivity growth over the long run, supporting policies that commit to reform paths despite short-run costs.
IMF Working Paper: "Impact of Structural Reformson Productivity Growth in Industrial Countries", Ranil M Salgado, Working Paper No. 2002/010.
Content in this bundle
- Impact of Structural Reforms on Productivity Growth in Indusrial Countries - WP/0210