ABSTRACT
This chapter assesses the impact of structural reforms on growth in the Caribbean. It focuses on a set of indices to measure the extent of structural reforms in the region, and employs the to estimate both short-run and long-run effects of structural reforms on growth, controlling for other possible growth determinants using panel dynamic Overall Life Satisfaction estimation. The chapter explores E. Lora's trade and tax index to Caribbean countries and adopts the methodology utilized by K. Greenidge and C. R. Milner to quantify financial liberalization. The common external tariff agreement also allows for a special rate on agricultural products, limited duty exemptions related to economic development, and some additional national discretion in the setting of tariff rates. Institutional quality is important for promoting growth, especially for small states. The area of exchange controls was perhaps the most emphasized dimension of the financial liberalization programmes undertaken by Caribbean countries in the 1990s.
