On the Impact of Structural Reforms on Output and Employment: Evidence from a Cross-country Firm-level Analysis
IMF Working Papers, April 6, 2018
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- On the Impact of Structural Reforms on Output and Employment: Evidence from a Cross-country Firm-level Analysis
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Bibliographic details
- Authors: Luiza Antoun de Almeida, Vybhavi Balasundharam
- Published: April 6, 2018
- Series: IMF Working Papers
- DOI: https://doi.org/10.5089/9781484350393.001
Overview and scope
- Authors: Luiza Antoun de Almeida, Vybhavi Balasundharam
- Publication: IMF Working Papers, Working Paper No. 2018/073
- Date: April 6, 2018
- Pages: 35
- Period covered: 2003-2014
- DOI: https://doi.org/10.5089/9781484350393.001
- ISBN: 9781484350393
- ISSN: 1018-5941
- Dataset: comprehensive cross-country firm-level dataset covering both advanced and emerging market economies (Orbis dataset, panel dataset referenced in Keywords)
Key findings on output and employment
- Structural reforms have in general a positive impact on output and employment in the medium term.
- The paper analyzes effects in the short and medium term and finds stronger evidence of positive impacts over the medium term.
- Firm-specific characteristics influence the effectiveness of structural reforms; characteristics examined include:
- size
- leverage (leveraged firm)
- profitability (firms profit)
- sector
Methodology and empirical approach
- Uses a cross-country firm-level panel dataset spanning 2003-2014.
- Focuses on heterogeneity of reform effects across firm characteristics and sectors.
- Aligns with previous studies in approach and comparative findings regarding medium-term gains.
Policy implications and recommendations
- Policymakers should tailor the design of structural reforms to maximize payoffs by:
- Accounting for heterogeneous impacts across firms by size, leverage, profitability, and sector.
- Considering firm-level characteristics when anticipating distributional and aggregate effects on output and employment.
- Tailored reform design can improve the effectiveness of reforms in boosting potential growth, production growth, and productivity.
Subjects and keywords (as provided)
- Subject: Commodity markets, Employment, Financial markets, Labor, Labor market reforms, Macrostructural analysis, Production, Production growth, Productivity, Structural reforms
- Keywords: Commodity markets, Europe, firm characteristic, firm-level data, firms profit, firms' output, Global, Labor market reforms, leveraged firm, Orbis dataset, panel dataset, potential growth, Production growth, Productivity, structural reforms, WP
IMF Working Paper No. 2018/073 — Luiza Antoun de Almeida and Vybhavi Balasundharam, April 6, 2018
Content in this bundle
- Section VII concludes.