Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/267840 
Authors: 
Year of Publication: 
2022
Series/Report no.: 
WIDER Working Paper No. 2022/92
Publisher: 
The United Nations University World Institute for Development Economics Research (UNU-WIDER), Helsinki
Abstract: 
Which structural reforms affect labour productivity growth in developing countries? This paper answers this question by combining the local projections method and the inverse probability weighted regression adjustment (LP-IPWRA) method. We find that financial reforms, trade reforms, and product market reforms boost labour productivity growth. By documenting the main channels, our results reveal that the reforms studied stimulate labour productivity growth by inducing dynamic efficiency, productive efficiency, and allocative efficiency. However, the results do not find statistical evidence of the ability of reforms to induce structural change. Further analysis taking into account the initial conditions reveals that the impact of reforms is not conditioned by the business cycle, the credit cycle, or whether or not a financial crisis occurs.
Subjects: 
labour productivity
structural reform
local projection method
business cycle
JEL: 
D24
O16
O24
O47
Persistent Identifier of the first edition: 
ISBN: 
978-92-9267-226-3
Document Type: 
Working Paper

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