Portal de Periódicos da CAPES

Growth, Reform Indicators and Policy Complementarities

2006; RELX Group (Netherlands); Linguagem: Inglês

10.2139/ssrn.912955

1556-5068

Jorge Braga de Macedo, Joaquim Oliveira Martins,

Regional Development and Policy

This paper discusses the design of structural policies by relating second-best results and the complementarity of reforms. It computes a complementarity index based on structural reform indicators compiled by the EBRD for transition countries, assuming that the run-up to EU integration corresponds to a nearly complete policy cycle. Using econometric panel estimates, the level of reforms and changes in their complementarity are found to be positively related to output growth, corrected for endogeneity, and given initial conditions and the extent of macroeconomic stabilisation.