IMF research examines correlation between structural reforms and economic convergence

International Monetary Fund headquarters

An International Monetary Fund working paper released on April 30 examines the links between structural economic reforms and regional convergence.

Authors Antonio Spilimbergo and Natasha Xingyuan Che find that domestic financial development, trade and current account openess, better infrastructural development, and labour market reforms facilitate regional convergence. The authors write that there is an inverse relationship between the levels of wage disparity within economies and the levels of

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