Structural Reform and Growth: What Really Matters? Evidence from the Caribbean

By Kevin Greenidge, Meredith A McIntyre, Hanlei Yun

April 7, 2016

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Kevin Greenidge, Meredith A McIntyre, and Hanlei Yun. Structural Reform and Growth: What Really Matters? Evidence from the Caribbean, (USA: International Monetary Fund, 2016) accessed November 22, 2024

Disclaimer: This Working Paper should not be reported as representing the views of the IMF.The views expressed in this Working Paper are those of the author(s) and do not necessarily represent those of the IMF or IMF policy. Working Papers describe research in progress by the author(s) and are published to elicit comments and to further debate

Summary

Since the 1980’s with the introduction of IMF/WB adjustment programs structural reforms have been a core part of the reform agenda in the Caribbean. The paper reviewed the package of structural reforms in trade liberalization, financial liberalization and tax policy, and gauges their impact on growth. The paper used a set of reform indices to gauge both short-run and long-run effects of structural reforms on growth, controlling for other possible growth determinants using panel dynamic OLS estimation. In addition, recognizing the importance of institutions to growth the empirical analysis also analyzed the impact of institutional quality on growth for a sample of small states including the Caribbean. We concluded that the benefits of structural reforms are only seen over the long-term and in reinvigorating growth the reform effort needs to be revived and include greater attention to strengthening institutional quality.

Subject: Consumption taxes, Macrostructural analysis, Personal income tax, Structural reforms, Tariffs, Taxes, Value-added tax

Keywords: Caribbean, Caribbean country, Consumption taxes, Country, Government, Government consumption expenditure, Government effectiveness, Government power, Government regulation, Governments of tourism, Institutional Quality, Liberalization, Liberalized trade regime, Personal income tax, Small States, Structural Reform, Structural reforms, Tariffs, Trade reform, Trade reform database, Trade reform indices, Value-added tax, WP

Publication Details

Pages:

32
Volume:

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DOI:

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Issue:

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Series:

Working Paper No. 2016/082
Stock No:

WPIEA2016082
ISBN:

9781484321812
ISSN:

1018-5941

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