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.
Labor and Product Market Reforms and External Imbalances: Evidence from Advanced Economies
Labor and Product Market Reforms and External Imbalances: Evidence from Advanced Economies - 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 Labor and Product Market Reforms and External Imbalances: Evidence from Advanced Economies write by Mr.Romain A Duval. This book was released on 2021-02-26. Labor and Product Market Reforms and External Imbalances: Evidence from Advanced Economies available in PDF, EPUB and Kindle. We explore the impact of major labor and product market reforms on current account dynamics using a new “narrative” database of major changes in employment protection for regular workers and product market regulation for non-manufacturing industries covering 26 advanced economies over the past four decades. Our main finding is that product market deregulation is associated with a weakening of the current account, while labor market deregulation is associated with an improvement. These effects are transitory and driven by both saving and investment responses. Labor and product market reforms both have a more positive impact on the current account balance when implemented under weak macroeconomic conditions. Our results are broadly consistent with predictions from recent DSGE models with endogenous producer entry and labor market frictions.
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.
Labor and Product Market Reforms in Advanced Economies
Labor and Product Market Reforms in Advanced Economies - 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 Labor and Product Market Reforms in Advanced Economies write by Angana Banerji. This book was released on 2017-03-13. Labor and Product Market Reforms in Advanced Economies available in PDF, EPUB and Kindle. Product and labor market reforms are needed to lift persistently sluggish growth in advanced economies. But reforms have progressed slowly because of concerns about their distributive and short-term economic effects. Our analysis, based on new empirical and numerical analysis and country case-studies shows that most labor and product market reforms can improve public debt dynamics over the medium-term. This because reforms raise output by boosting employment and/or labor productivity. But the effect of some labor market reforms on budgetary outcomes and fiscal sustainability depends critically on business cycle conditions. Our evidence also suggests that some temporary and well-designed up-front fiscal stimulus can help enhance the economic impact of reforms. In the past, countries have used fiscal incentives in the past to facilitate reforms by alleviating transition and social costs. But strong ownership of reforms was crucial for their successful implementation.
