TY - BOOK ID - 134372159 TI - Structural Reforms and Economic Growth: A Machine Learning Approach AU - Ari, Anil. AU - Pula, Gabor. AU - Sun, Liyang. PY - 2022 PB - Washington, D.C. : International Monetary Fund, DB - UniCat KW - Macroeconomics KW - Economics: General KW - Corporate Finance KW - Labor KW - Intelligence (AI) & Semantics KW - Institutions and the Macroeconomy KW - Quantitative Policy Modeling KW - Large Data Sets: Modeling and Analysis KW - Computable and Other Applied General Equilibrium Models KW - Institutions and Growth KW - Measurement of Economic Growth KW - Aggregate Productivity KW - Cross-Country Output Convergence KW - Financial Institutions and Services: General KW - Demand and Supply of Labor: General KW - Technological Change: Choices and Consequences KW - Diffusion Processes KW - Labor Economics Policies KW - Economic & financial crises & disasters KW - Economics of specific sectors KW - Labour KW - income economics KW - Machine learning KW - Structural reforms KW - Macrostructural analysis KW - Business environment KW - Economic sectors KW - Labor markets KW - Technology KW - Labor market reforms KW - Currency crises KW - Informal sector KW - Economics KW - Business enterprises KW - Labor market KW - Manpower policy UR - https://www.unicat.be/uniCat?func=search&query=sysid:134372159 AB - The qualitative and granular nature of most structural indicators and the variety in data sources poses difficulties for consistent cross-country assessments and empirical analysis. We overcome these issues by using a machine learning approach (the partial least squares method) to combine a broad set of cross-country structural indicators into a small number of synthetic scores which correspond to key structural areas, and which are suitable for consistent quantitative comparisons across countries and time. With this newly constructed dataset of synthetic structural scores in 126 countries between 2000-2019, we establish stylized facts about structural gaps and reforms, and analyze the impact of reforms targeting different structural areas on economic growth. Our findings suggest that structural reforms in the area of product, labor and financial markets as well as the legal system have a significant impact on economic growth in a 5-year horizon, with one standard deviation improvement in one of these reform areas raising cumulative 5-year growth by 2 to 6 percent. We also find synergies between different structural areas, in particular between product and labor market reforms. ER -