OECD Economics Department Working Papers

ISSN: 
1815-1973 (online)
http://dx.doi.org/10.1787/18151973
Hide / Show Abstract
Working papers from the Economics Department of the OECD that cover the full range of the Department’s work including the economic situation, policy analysis and projections; fiscal policy, public expenditure and taxation; and structural issues including ageing, growth and productivity, migration, environment, human capital, housing, trade and investment, labour markets, regulatory reform, competition, health, and other issues.

The views expressed in these papers are those of the author(s) and do not necessarily reflect those of the OECD or of the governments of its member countries.

 

The quantification of structural reforms

Extending the framework to emerging market economies You or your institution have access to this content

English
Click to Access: 
    http://oecd.metastore.ingenta.com/content/f0a6fdcb-en.pdf
  • PDF
  • http://www.keepeek.com/Digital-Asset-Management/oecd/economics/the-quantification-of-structural-reforms_f0a6fdcb-en
  • READ
Author(s):
Balázs Égert1
Author Affiliations
  • 1: OECD, France

29 Nov 2017
Bibliographic information
No.:
1442
Pages:
54
http://dx.doi.org/10.1787/f0a6fdcb-en

Hide / Show Abstract

This paper estimates and quantifies the impact of structural reforms on per capita income for a large set of OECD and non-OECD countries. The findings suggest that the quality of institutions matters to a large extent for economic outcomes. More competition-friendly regulations, as measured by the OECDs’ Product Market Regulation (PMR) indicator improve economic outcomes. Lower barriers to foreign trade and investment help MFP. Lower barriers to entry and less pervasive state control of businesses boost the capital stock and the employment rate. No robust link between labour market regulation and MFP and capital deepening could be established. But looser labour market regulation is found to go hand in hand with higher employment rates. The paper shows that countries at different level of economic development face different policy impacts. Furthermore, PMR effects depend on the level of labour market regulations.
Keywords:
multi-factor productivity, OECD, per capita impact, simulation, employment, institutions, investment, developing countries, emerging market economies, regulation, product markets, structural reforms, labour markets
JEL Classification:
  • D24: Microeconomics / Production and Organizations / Production ; Cost ; Capital ; Capital, Total Factor, and Multifactor Productivity ; Capacity
  • E17: Macroeconomics and Monetary Economics / General Aggregative Models / Forecasting and Simulation: Models and Applications
  • E22: Macroeconomics and Monetary Economics / Consumption, Saving, Production, Investment, Labor Markets, and Informal Economy / Investment ; Capital ; Intangible Capital ; Capacity
  • E24: Macroeconomics and Monetary Economics / Consumption, Saving, Production, Investment, Labor Markets, and Informal Economy / Employment ; Unemployment ; Wages ; Intergenerational Income Distribution ; Aggregate Human Capital ; Aggregate Labor Productivity
  • J08: Labor and Demographic Economics / General / Labor Economics Policies
 
Visit the OECD web site