Structural Reforms and
European Integration

Theory, Measurement and Econometric Evidence



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A Research Project by

About

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:


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Create the Dataset

We construct a panel data set reflecting the extensive reform experience of the 28 EU members between 1990 and 2015.

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Study the Determinants

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.

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Investigate the Effect

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.

Call for Papers

Third and final ESRC LSE/UCL workshop
on Structural Reforms and European Integration Workshop

London School of Economics, 30th of March 2020

This spring, we are organizing a third workshop on structural reforms and European integration. We have been commissioned by the Journal of Economic Literature to survey the state of structural reforms research and would like to open the workshop with a brief presentation of our outline and plans. We would like to use the opportunity of this workshop to receive your comments, criticisms and suggestions as well as to become familiar with your latest research so that it is properly acknowledged in our survey.

We would like to bring together researchers working on structural reforms. The following are among the topics we would like the workshop to cover:

  • Globalization, European Integration and Structural Reforms
  • Income Inequality and Structural Reforms in the EU
  • Convergence, Growth and Structural Reforms in the EU
  • Capital, Labour and Product Market Reforms in the EU
  • Country case studies covering some of the above topics


The workshop will be held in London on Monday March 30, 2020. If you are interested in participating and would like to present your work, please let us know at your earlier convenience but please no later than Friday 31 January 2020. We welcome submissions either in an abstract or working paper forms. We can cover your costs of travel and lodging.

You may wish to submit your paper presented at the workshop for publication in a Special Issue of Comparative Economic Studies.

Please send your submission by email to: yuemei.ji@ucl.ac.uk

We look forward to hearing from you.

Organisers:

Paul De Grauwe (European Institute, LSE)
Nauro Campos (University College London)
Yuemei Ji (University College London)





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2. Workshop

Friday, 11th of May 2018

London School of Economics
Portugal Street, Building: COW 1.11
The Canada Blanch Seminar Room
(first floor of the European Institute)

Download the workshop agenda as Word Document



Organisers:
Paul De Grauwe (European Institute, LSE)
Nauro Campos (Brunel University London)
Yuemei Ji (SSEES, UCL)


Welcome Dinner: Thursday May 10, 7pm, restaurant to be announced later


9.00-10.30 Session 1: Reforms and growth in Europe, Chair: Nauro Campos
(Format: 20min presentation followed by a 10min discussion for each paper)


10.30-11.00 Coffee break


11-13.00 Session 2: Crisis and reforms, Chair: Pasquale Foresti
(Format: 20min presentation followed by a 10min discussion for each paper)


1-2pm Lunch


2-3.30 Session 3: Reforms, austerity, and inequality, Chair: Yuemei Ji
(Format: 20min presentation followed by a 10min discussion for each paper)


3.30-4.00 Coffee break


4.00-5.30 Session 4: Reform experiences, Chair: Corrado Macchiarelli
(Format: 20min presentation followed by a 10min discussion for each paper)


5.30-6.30 Keynote address, Chair: Paul De Grauwe

  • Professor Wendy Carlin (UCL)



Farewell drinks Friday 7pm at The George



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1. Workshop

London School of Economics, 8th of May 2017

9am - 9.50am: Keynote speech: Prof. Eric Bartelsman (Vrije Universiteit Amsterdam)

10am - 12pm: Session 1: If reforms are good for growth, why don’t all countries implement them?


12pm - 1pm Lunch


1pm - 3pm: Session 2: On the relationships among very many different structural reforms


3.30pm - 5.30pm: Session 3: Are labor markets reforms indeed pivotal?


5.45pm - 6.30pm: Closing panel

  • Erik Berglof (Director of the Institute of Global Affairs, LSE)

  • Simeon Djankov (Executive Director, Financial Markets Group, LSE)

  • Francesco Caselli (Norman Sosnow Professor of Economics, LSE)




Publications

Campos, N., De Grauwe, P., Ji, Y., eds. (2018), The Political Economy of Structural Reforms in Europe, editors, Oxford University Press

De Grauwe, P., and Ji, Y., (2018), Structural Reforms, Growth and Inequality: An Overview of Theory, Measurement and Evidence, in Campos, N., De Grauwe, P., and Ji, Y., Eds., (2018), The Political Economy of Structural Reforms in Europe, Oxford University Press.

Saka, O., Campos, N., De Grauwe, P., Ji, Y., Martelli, A., (2019), Financial crises and the dynamics of financial de-liberalization, VoxEU, https://voxeu.org/article/financial-crises-and-dynamics-financial-de-liberalisation

Saka, O., Ji, Y., De Grauwe, P., (2020), Financial Policymaking after Crises: Public versus Private Interests, VoxEU, https://voxeu.org/article/financial-policymaking-after-crises

Campos, N., P. De Grauwe, & Y. Ji , (2020), (Eds.), Economic Growth and Structural Reforms in Europe. Cambridge: Cambridge University Press.

Ganslmeier, M., Campos, N., De Grauwe, P., Ji, Y., Martelli, A., and Saka, O., (2019), Structural reforms in Europe: Lessons from early experiences, in Campos, N., P. De Grauwe, & Y. Ji , (2020), (Eds.), Economic Growth and Structural Reforms in Europe. Cambridge: Cambridge University Press

Martelli, A., Campos, N., Ji, Y., Ganslmeier, M., and Saka, O., On the Complementarity between Labour Market Regulation and Tax Reforms in the European Union, in Campos, N., P. De Grauwe, & Y. Ji , (2020), (Eds.), Economic Growth and Structural Reforms in Europe. Cambridge: Cambridge University Press

De Grauwe, P. and Ji, Y., (2020), Structural Reforms, Animal Spirits and Monetary Policies, European Economic Review, https://doi.org/10.1016/j.euroecorev.2020.103395

Saka, O., Campos, N., De Grauwe, P., Ji, Y., Martelli, A., (2019), Financial Crises and Liberalisation. Progress or Reversals, CEPR Discussion Paper, 15145, https://portal.cepr.org/discussion-paper/15145

Saka, O., Ji, Y., and De Grauwe, P., (2020), Financial Policymaking after Crises. Public versus Private Interests, CEPR Discussion Paper, no. 17317, https://portal.cepr.org/discussion-paper/17317

Data

Labour Market Regulation Indices

Time Coverage: 1970-2016
Country Coverage: 162 Countries
Type of Data: Indices


Download xlsx-file

Taxation Indices

Time Coverage: 1970-2018
Country Coverage: 196 Countries
Type of Data: Indices


Download xlsx-file

Financial Market Regulation Indices

Time Coverage: 1950-2017
Country Coverage: 195 Countries
Type of Data: Indices


Download xlsx-file

People

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Paul De Grauwe
London School of Economics

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Professor Paul De Grauwe

John Paulson Chair in European Political Economy
European Institute, London School of Economics

Prior to joining LSE, Paul De Grauwe was Professor of International Economics at the University of Leuven, Belgium. He was a member of the Belgian parliament from 1991 to 2003. He is honorary doctor of the University of Sankt Gallen (Switzerland), of the University of Turku (Finland), the University of Genoa, the University of Valencia and Maastricht University.



He obtained his PhD from the Johns Hopkins University in 1974.
 He was a visiting professor at various universities- the University of Paris, the University of Michigan, the University of Pennsylvania, Humboldt University Berlin, the Université Libre de Bruxelles, the Université Catholique de Louvain, the University of Amsterdam, the University of Milan, Tilburg University, the University of Kiel. He was also a visiting scholar at the IMF, the Board of Governors of the Federal Reserve, the Bank of Japan and the European Central Bank.

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Yuemei Ji
University College London

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Dr Yuemei Ji

Lecturer in Economics
School of Slavonic & East European Studies, University College London

Yuemei Ji's interests cover three aspects. 1. International macroeconomics in general and the European monetary union during post-crisis period in particular. 2. Behavioural macroeconomics. 3. The Chinese economy, especial its financial development and the government and private debt problems.

Yuemei Ji did her undergraduate studies in Economics at Fudan University Shanghai and obtained her PhD in economics from the University of Leuven in 2011. She gives lectures on Intermediate Macroeconomics and International Macroeconomics. Prior to joining UCL, she was a post-doc researcher at the University of Leuven and then was a lecturer at Brunel University. She has been a visiting fellow at various institutions such as the European Institute at LSE and the Centre for European Policy Studies (CEPS) in Brussels.

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Nauro Campos
Brunel University

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Professor Nauro Campos

Professor of Economics and Finance
Brunel University

Nauro Campos is Professor of Economics and Finance at Brunel University London, a post he has held since 2005. He is also a Research Fellow at IZA-Bonn and a Research Professor at ETH-Zürich. His main fields of interest are political economy and European integration. He has taught at the Universities of Bonn, Brunel, CERGE-EI (Prague), Newcastle, Paris 1 Sorbonne and Warwick. He was a Fulbright Fellow at Johns Hopkins University (Baltimore), a Robert McNamara Fellow at The World Bank, and a CBS Fellow at Oxford University. He is a member of the Scientific Advisory Board of the (Central) Bank of Finland and was a visiting scholar (usually more than once) at the IMF, World Bank, European Commission, University of Michigan, ETH, USC, Bonn, UCL and Stockholm. From 2009 to 2014, he was seconded as Senior Economic Advisor/SRF to the Chief Economist of the Department for International Development (during the reigns of both Winters and Dercon.).

He received his Ph.D. from the University of Southern California (Los Angeles) in 1997, where he was lucky enough to learn about institutions from Jeff Nugent and Jim Robinson and (more than) happy to be Dick Easterlin’s RA for three years.

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Orkun Saka
City, University of London

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Dr Orkun Saka

Assistant Professor
City, University of London

Orkun Saka is an Assistant Professor (Lecturer) in Economics at the City, University of London, a Research Associate at the Systemic Risk Centre and STICERD as well as a Research Affiliate at the CESifo network. He has previously visited and worked for several policy institutions including the Bank of Finland, European Bank of Reconstruction and Development and the Central Bank of the Republic of Turkey. His academic papers have been published in some of the world-leading journals in economics and finance, such as The Economic Journal and Journal of Money, Credit and Banking.

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Angelo Martelli
London School of Economics

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Dr Angelo Martelli

Assistant Professor
European Institute of the London School of Economics and Political Science

Assistant Professor at the European Institute of the London School of Economics and Political Science. He is currently a Consultant for the Jobs Group of the World Bank and a Policy Fellow for the Open Innovation Team of the UK Cabinet Office and HM Treasury. His research interests span labour economics and European political economy. He is affiliated with the LSE Institute of Global Affairs where he co-leads their migration initiative and was an integral part in the launch of the Alliance of Leading Universities on Migration (ALUM). Before arriving at the LSE for his PhD he graduated from Pompeu Fabra University with a MSc and Master of Advanced Studies in Economics. Former President of the LSE Italian Society. He has published Op-Eds for several international newspapers including WSJ and El Pais.

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Nicholas Andreoulis
London School of Economics

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Nicholas Andreoulis

Research Assistant in Economics
European Institute, London School of Economics

Nicholas has studied Economics at University College London during his masters. He has been especially interested in Macroeconomics, with a particular focus on the Economics of Fiscal Policy and unconventional monetary policy. Prior to his master program, he was a student of Economics at University of Edinburgh.

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Michael Ganslmeier
University of Oxford

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Michael Ganslmeier

DPhil Student in Social Policy
University of Oxford

Michael is a DPhil student in Social Policy at the Department of Social Policy and Intervention at the University of Oxford. In his DPhil, he focuses on social and economic policy changes and how machine learning and causal inference can be used to improve our empirical understanding of both domains. For his doctoral studies, he has received a full scholarschip from ESRC and All Souls College. He holds a bachelor’s degree in Economics from Zeppelin University (with semester abroad at Columbia University) and a master’s degree in International Political Economy from London School of Economics (LSE). Before and during his doctoral studies, he has worked as Consultant, Researcher and Research Assistant at IMF, Oxford, LSE, UCL, King's College, and EBRD.

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