Publication

This paper examines the distributional effects of structural reforms in developing countries. To this end, the author sets up a small-scale macroeconomic model of a dual economy to capture the transmission mechanisms of various factors. He assesses the impact of the deregulation of product and factor markets and the liberalization of the trade and foreign direct investment regime. He further examines the impact of the privatization of public companies on the distribution of employment and wages between the formal and the informal sector. He tests the implications of the model in a case study on the structural reform process in Bolivia since 1985.