Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/53437 
Authors: 
Year of Publication: 
2007
Series/Report no.: 
ADBI Discussion Paper No. 60
Publisher: 
Asian Development Bank Institute (ADBI), Tokyo
Abstract: 
This paper begins with a short review and discussion of the literature on policy complementarities and its implications in terms of (sustainable) growth strategies and the possible emergence of a new policymaking paradigm. Thereafter, it analyses the effect on growth of complementarities in structural policies in the specific context of a post-crisis recovery. The application of this framework to the Asian crisis can be regarded as a natural experiment. As the result of computing a complementarity indicator and a reform level indicator adjusted for complementarity for the most affected economies-Indonesia, the Republic of Korea, Malaysia, and Thailand-this study finds that these indicators, for which a comprehensive group of policy areas was considered, are clearly related to higher immediate resilience and to faster recoveries. The results suggest that while augmenting the levels of the so-called orthodox policies is necessary, it is not sufficient to generate high sustainable growth trajectories, as they must be complemented with other policies and evolve in a parallel way.
Subjects: 
second-best
complementarity
structural reforms
growth
resilience
recovery
Asian crisis
Document Type: 
Working Paper

Files in This Item:
File
Size
318.77 kB





Items in EconStor are protected by copyright, with all rights reserved, unless otherwise indicated.