Micro and Macro Effects of Product Market Reforms - read free eBook in online reader or directly download on the web page. Select files or add your book in reader. Download and read online ebook Micro and Macro Effects of Product Market Reforms write by Allan Kayongo. This book was released on 2018. Micro and Macro Effects of Product Market Reforms available in PDF, EPUB and Kindle. In the recent decades, slow growth in Advanced Economies have led policymakers to emphasize structural reforms. Similarly, Emerging and low-income countries have for decades carried out structural reforms only that they have obtained gains in the most recent decades. Product market reforms affect different sized industries differently. They also positively affect employment, profitability, productivity and innovation; however, this is more so the case for downstream industries or firms than upstream industries or firms. Efficient Public Administration is critical in the effectiveness of product market reforms.
The Short-Term Impact of Product Market Reforms
The Short-Term Impact of Product Market Reforms - read free eBook in online reader or directly download on the web page. Select files or add your book in reader. Download and read online ebook The Short-Term Impact of Product Market Reforms write by Peter N. Gal. This book was released on 2016-09-22. The Short-Term Impact of Product Market Reforms available in PDF, EPUB and Kindle. This paper analyzes the effects of product market reforms in the short and medium term across 10 regulated industries and 18 advanced economies for the period 1998-2013 using internationally comparable firm-level data based on Orbis. It provides four key insights. First, product market reforms have positive effects on capital, output and employment and their effects increase over time. After two years, they raise capital by 4%, output by 3% and employment by 1.5%. Second, differences in production technology and the nature of product market regulations across sectors generate important differences in the mechanisms through which reforms operate. In network industries, reforms tend to benefit small firms, while the opposite is observed in retail trade. Product market reforms also promote firm entry, particularly those that reduce entry barriers. Third, credit constraints can play an important role in weakening the positive impact of product market reform on investment. Fourth, product market reforms also tend to have positive effects on firms in downstream sectors—both at home and abroad—that make intensive use of intermediate inputs from deregulated sectors.
Product Market Deregulation and Growth
Product Market Deregulation and Growth - read free eBook in online reader or directly download on the web page. Select files or add your book in reader. Download and read online ebook Product Market Deregulation and Growth write by Romain Bouis. This book was released on 2016-09-23. Product Market Deregulation and Growth available in PDF, EPUB and Kindle. The paper investigates the economic effects of major product market reforms in some of the historically most protected non-manufacturing industries. It relies on a unique mapping between new annual data on reform shocks and sector-level outcomes for five network industries (electricity and gas, land transport, air transport, postal services, and telecommunications) in twenty-six countries spanning over three decades. The use of a threedimensional panel and careful instrumentation of reform shocks using external instruments enables us to control for economy-wide macroeconomic shocks and address possible sources of omitted variable bias more broadly. Using a local projection method, we find that major reductions in barriers to entry yield large increases in output and labor productivity over a five-year horizon, concomitant with a relative price decline. By contrast, there is only a weak positive effect on sectoral employment, and investment is essentially unaffected, suggesting that output gains from reform primarily reflect higher total factor productivity. It takes some time for these gains to materialize: effects become statistically significant two to three years after the reform, as prices start dropping, and productivity and output increase significantly. However, there is no evidence of any negative short-term cost from reform, including under weak macroeconomic conditions. These findings provide a clear case for intensifying product market reform efforts in advanced economies at the current juncture of weak growth.
When Do Structural Reforms Work? On the Role of the Business Cycle and Macroeconomic Policies
When Do Structural Reforms Work? On the Role of the Business Cycle and Macroeconomic Policies - read free eBook in online reader or directly download on the web page. Select files or add your book in reader. Download and read online ebook When Do Structural Reforms Work? On the Role of the Business Cycle and Macroeconomic Policies write by MissAnna Rose Bordon. This book was released on 2016-03-15. When Do Structural Reforms Work? On the Role of the Business Cycle and Macroeconomic Policies available in PDF, EPUB and Kindle. Structural reforms are expected to lift growth and employment, but their effects are surprisingly difficult to pin down empirically. One reason is their potential endogeneity to the economic environment in which they are conducted. For example, the impact of a reform implemented shortly before a cyclical upswing is difficult to distinguish from the recovery itself. Similarly, macroeconomic policies conducted along a structural reform could affect the estimated impact. Exploring various options, this paper develops robust estimates of the impact of labor and product market reforms by using local projection techniques while controlling for endogeneity of reforms and other biases. The results suggest that labor and product market reforms have a lagged but positive impact on employment creation, and the positive effect remains even after controlling for the endogeneity of the decision to reform. Supportive macroeconomic policies are found to increase the effect of labor and product market reforms, consistent with the view that some structural reforms are best initiated in conjunction with supportive fiscal or monetary policy.
Market Reforms at the Zero Lower Bound
Market Reforms at the Zero Lower Bound - read free eBook in online reader or directly download on the web page. Select files or add your book in reader. Download and read online ebook Market Reforms at the Zero Lower Bound write by Matteo Cacciatore. This book was released on 2017-10-03. Market Reforms at the Zero Lower Bound available in PDF, EPUB and Kindle. This paper studies the impact of product and labor market reforms when the economy faces major slack and a binding constraint on monetary policy easing. such as the zero lower bound. To this end, we build a two-country model with endogenous producer entry, labor market frictions, and nominal rigidities. We find that while the effect of market reforms depends on the cyclical conditions under which they are implemented, the zero lower bound itself does not appear to matter. In fact, when carried out in a recession, the impact of reforms is typically stronger when the zero lower bound is binding. The reason is that reforms are inflationary in our structural model (or they have no noticeable deflationary effects). Thus, contrary to the implications of reduced-form modeling of product and labor market reforms as exogenous reductions in price and wage markups, our analysis shows that there is no simple across-the-board relationship between market reforms and the behavior of real marginal costs. This significantly alters the consequences of the zero (or any effective) lower bound on policy rates.
