Since the 2007 financial crisis, most EU countries have been unable to return to their pre-crisis growth path. From many European capitals, we hear incessantly that structural reforms are the key to economic growth. Although this view has led many countries in Europe into implementing reform programs, we still lack a clear understanding of structural reforms. The almost exclusive focus on product and labor market regulations (in detriment to other important reforms such as trade liberalization) has contributed to this dearth of analysis. This project aims to fill this gap by focusing on three research objectives:
1) We construct a panel data set reflecting the extensive reform experience of the 28 EU members between 1990 and 2015.
2) We use this data set to provide a study of the determinants of structural reforms. We will analyse the role of initial conditions, institutions and political development, and of economic growth on the dynamics of structural reforms.
3) We investigate how structural reforms may affect economic growth and income inequality. This will allow us to answer the question which individual reforms are most beneficial.
Research team
Professor Paul De Grauwe is John Paulson Chair in European Political Economy, European Institute, ÐÓ°ÉÂÛ̳.
Dr Yuemei Ji is Lecturer in Economics at the School of Slavonic & East European Studies, UCL.
Professor Nauro Campos is Professor of Economics and Finance, Brunel University.