Front Matter Page
Western Hemisphere Department
Contents
I. Introduction
II. Structural Reform Efforts in LAC Since the 1970s
III. Quantifying the Effects of Structural Reforms
A. The Effects on Economic Growth, Employment, and Total Factor Productivity
B. Do initial conditions matter?
C. Inspecting the Mechanisms: Investment, FDI, Informality, and Confidence
D. Structural Reforms and External Trade
E. The Sectoral Effects of Reforms
F. Collateral Damage? The Effects of Reforms on Poverty and Inequality
IV. Country Case Studies Using the Synthetic Control Method
V. Policy Implications and Conclusions
Figures
Figure 1. Trends in the Structural Reforms Index
Figure 2. Ratios Relative to the United States for Different Reform Areas (Selected Countries)
Figure 3. Overall Support for Reforms
Figure 4. Support for Specific Reforms
Figure 5. Effects of Structural Reforms on Real GDP
Figure 6. Effects of Structural Reforms on Employment
Figure 7. Effects of Structural Reforms on Total Factor Productivity
Figure 8. Effects of Structural Reforms on GDP Depending on the State of the Economy
Figure 9. Effects of Domestic Finance Reforms on GDP Conditioned on the Level of Liberalization
Figure 10. Effects of Trade and Product Market Reforms on GDP Conditioned on the Level of Labor Market Liberalization
Figure 11. Effects of Structural Reforms on Investment and FDI
Figure 12. Effects of Structural Reforms on Informality Rate
Figure 13. Effects of Structural Reforms on Business Confidence (14 Economies)
Figure 14. Effects of Structural Reforms on Real Exports
Figure 15. Effects of Structural Reforms on Real Imports
Figure 16. Effects of Structural Reforms on Export concentration (Theil index)
Figure 17. Effects of Structural Reforms on Agriculture and Manufacturing Value Added
Figure 18. Effects of Structural Reforms on Services Value Added
Figure 19. Effects of Structural Reforms on Manufacturing Value Added
Figure 20. Effects of Structural Reforms on Agriculture Value Added
Figure 21. Effects of Structural Reforms on Services Value Added
Figure 22. Effects of Structural Reforms on Poverty and Inequality
Figure 23. Chile: Synthetic Control and Placebo
Figure 24. Colombia: Synthetic Control and Placebo
Figure 25. Mexico: Synthetic Control and Placebo
Tables
Table 1. Fixed-Effects Panel Regressions of the Drivers of Reforms
Appendixes
VI. Annex A: Definitions and Sources for Selected Variables
Annex B: Additional Regressions on Determinants of Reforms