Impact of macro-structural reforms on the productivity growth of regions: distance to the frontier matters

D'Costa, S., Garcilazo, E. and Martins, J.O. 2019. Impact of macro-structural reforms on the productivity growth of regions: distance to the frontier matters. Papers in Regional Science. 98 (1), pp. 133-166. doi:10.1111/pirs.12346

TitleImpact of macro-structural reforms on the productivity growth of regions: distance to the frontier matters
TypeJournal article
AuthorsD'Costa, S., Garcilazo, E. and Martins, J.O.
Abstract

Using a panel of 265 regions from 24 OECD countries from 1997 to 2007, we explore the impact of nation-wide macroeconomic and structural policies on the productivity growth of subnational regions. We find that average relationships between nation-wide policies and regional productivity growth can hide strong differentiated effects according to the distance to the frontier: relaxing employment protection legislation on temporary contracts, lowering barriers to trade and investment and increasing trade openness enhances productivity growth in lagging regions, whereas reducing barriers to entrepreneurship or higher levels of government debt has a positive effect on regions closer to the productivity frontier.

Keywordsstructural reforms; regional growth; lagging regions.
Article numberPIRS12346
JournalPapers in Regional Science
Journal citation98 (1), pp. 133-166
ISSN1435-5957
1056-8190
Year2019
PublisherWiley
Accepted author manuscript
Digital Object Identifier (DOI)doi:10.1111/pirs.12346
Publication dates
Published online11 Jan 2018
Published in print2019

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