The Impact of Structural and Macroeconomic Factors on Regional Growth

摘要: This papers aims to understand the impact of nation-wide structural policies such as product market regulation in six upstream sectors and employment protection legislation that macroeconomic factors on productivity growth OECD regions. In particular we explore how this effect varies with gap regions their country’s frontier region. We use a policy-augmented model allows us simultaneously estimate effects regional controlling for region-specific determinants growth. our an unbalanced panel dataset consisting 217 from 22 countries covering period 1995 2007. find strong statistical negative five considered are differentiated respect gap. Our estimates also reveal dispersion hurts suggesting policy complementarity can boost The overall especially detrimental lagging three consider influence performance: inflation has government debt positive average. When differentiating by distance frontier, trade-openness is more beneficial less These results link between regions, which carries important implications, mainly these should be taken into account design.