Structural reforms in Europe: lessons from early experiences

Saka, Orkun, Martelli, Angelo, Ganslmeier, Michael, Ji, Yuemei, Campos, Nauro F. and De Grauwe, Paul (2020) Structural reforms in Europe: lessons from early experiences. In: Campos, Nauro F., De Grauwe, Paul and Ji, Yuemei, (eds.) Economic Growth and Structural Reforms in Europe. Cambridge University Press, Cambridge, UK, 317 - 341. ISBN 9781108479110

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Abstract

It has long been argued that structural reforms constitute a remedy for getting countries out of the low-growth environment that Europe has experienced in the last decade. Many recent studies show long-term benefits of such reforms in cross-country settings, but ignore the heterogeneity across different country experiences. To address this gap in the context of the European Union, we focus on the largest early reforms that its four members (Denmark, France, Greece and Portugal) adopted in financial and labour markets. By using a Synthetic Control Method, we find that many of these early reform episodes do not seem to have been as fruitful as their advocates claimed at the time. Our results indicate a rather mixed relationship between reforms and several macro measures, including economic growth and inequality. Reforms, especially when introduced all at once as a big-bang, do not seem to always produce the intended results.

Item Type:	Book Section
Official URL:	https://www.cambridge.org/gb/academic/subjects/eco...
Additional Information:	© 2020 Cambridge University Press
Divisions:	European Institute
Subjects:	H Social Sciences > HC Economic History and Conditions H Social Sciences > HG Finance J Political Science > JN Political institutions (Europe)
Date Deposited:	26 May 2022 10:51
Last Modified:	15 Sep 2023 10:17
URI:	http://eprints.lse.ac.uk/id/eprint/115212

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