The potential growth impact of structural reforms in the EU. A benchmarking exercise

Janos Varga and Jan in 't Veld

No 541, European Economy - Economic Papers 2008 - 2015 from Directorate General Economic and Financial Affairs (DG ECFIN), European Commission

Abstract: This paper presents a quantitative model-based assessment of the potential impact of structural reforms in the EU Member States. By comparing structural indicators of labour and product markets, a gap is defined for each indicator relative to the 3 best performers. Scenarios are then simulated in which half the gap vis-à-vis best performance is closed, to avoid setting unrealistic and/or unattainable targets. The simulations show large potential gains in output and employment, raising EU GDP by 3 % after five years and 6% after ten years. While competitiveness gains are smaller under simultaneous reforms, higher demand effects help to support growth in trading partners.

JEL-codes: C53 E10 F47 O20 O30 O41 (search for similar items in EconPapers)
Pages: 40 pages
Date: 2014-12
New Economics Papers: this item is included in nep-cmp, nep-eec and nep-mac
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Citations: View citations in EconPapers (30)

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Persistent link: https://EconPapers.repec.org/RePEc:euf:ecopap:0541

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