Does reform work? An econometric survey of the reform-growth puzzle

Bebecky, Jan, and Campos, Nauro F.-Does reform work? An econometric survey of the reform-growth puzzle There is still an intense controversy about the empirical support for the effects of structural reforms on economic growth. This paper uses data from 46 studies and more than 500 estimates to: (a) document the variation in these estimated effects and (b) identify the main factors that help explain it. We put forward evidence, based on the general-to-specific method, suggesting that the estimated long-run effects of reform on growth are normally distributed, and that accounting for institutions and initial conditions (trade liberalization) are principal factors in decreasing (increasing) the probability of reporting significant and positive effects of reform on growth. Journal of Comparative Economics xxx (xx) (2011) xxx-xxx. Czech National Bank, Sorbonne Economic Center, University of Paris 1, France: Brunel University, CEPR-London, IZA-Bonn and WDI-University of Michigan, United Kingdom. (C) 2010 Association for Comparative Economic Studies Published by Elsevier Inc. All rights reserved.