Effects of Structural Reforms on Economic Growth: Evidence from the Transition Economies

In this study, it is aimed to investigate the effects of structural reforms on economic growth in the transition economies over the period from 2002 to 2019. For this purpose, employing Z-Scores and Cyclical Indicators approaches and using a novel database (Monitoring of Fund Arrangements (MONA)), this study constructs financial, fiscal, real, trade, and total structural reforms and examines the relationship between the structural reforms and economic growth within the models defined based on the extension of the Cobb-Douglas production function. As a result of the study, regardless of which approach used to construct the structural reforms, it is detected that all structural reforms have a positive and statistically significant effect on economic growth in all models estimated by using CS-DL and CS-ARDL methods.