Policy Complementarities and the Washington Consensus

September 1, 1997

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Format: Chicago

Jahangir Aziz, and Robert F. Westcott Policy Complementarities and the Washington Consensus, (USA: International Monetary Fund, 1997) accessed December 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

While economists continue to debate whether particular economic policies, such as those referred to in Willliamson’s (1993) “Washington Consensus,” can spur growth in developing countries, this paper demonstrates that it is combinations of policies that are more critical for growth. Policy complementarity refers to the mutually reinforcing benefits of policies that create an environment that is conducive to investment and growth. Quantitative measures of policy complementarity are developed, and the study shows empirically, through both an outcomes-based probability framework and a standard regression analysis, that these complementarities are significant and robust in explaining growth outcomes over the period 1985–95.

Subject: Bank deposits, Government debt management, Human capital, Inflation, Population growth

Keywords: Policy, Policy combination, Policy complementarity, Type policy, WP

Publication Details

Pages:

20
Volume:

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DOI:

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Issue:

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Series:

Working Paper No. 1997/118
Stock No:

WPIEA1181997
ISBN:

9781451940954
ISSN:

1018-5941

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