The Post-Crisis Growth Slowdown in Emerging Economies and the Role of Structural Reforms
This paper constructs indicators of structural bottlenecks arising from barriers to open markets, obstacles to business operations, and constraints to access to finance. Empirical evidence from a sample of 30 emerging economies indicates that barri...
| Main Authors: | , , |
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| Format: | Policy Research Working Paper |
| Language: | English en_US |
| Published: |
World Bank Group, Washington, DC
2014
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| Subjects: | |
| Online Access: | http://documents.worldbank.org/curated/en/2014/11/20377499/post-crisis-growth-slowdown-emerging-economies-role-structural-reforms http://hdl.handle.net/10986/20610 |
| Summary: | This paper constructs indicators of
structural bottlenecks arising from barriers to open
markets, obstacles to business operations, and constraints
to access to finance. Empirical evidence from a sample of 30
emerging economies indicates that barriers to open markets
and access to finance are significantly associated with
differences in total factor productivity growth in the
post-global financial crisis period compared with the
pre-crisis period -- with countries with fewer barriers
showing stronger recovery and resilience. Barriers to access
to finance are also associated with differences in the
performance of private investment. Reforms to improve the
policy framework in these areas, up to the level of the
best-ranking countries, could offset the recently observed
growth slowdown in emerging economies. These reforms would
revitalize potential growth and mitigate the risks from
external shocks associated with the global environment in
the transition from the global financial crisis. |
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