Submission Date
4-28-2025
Document Type
Paper
Department
Business & Economics
Adviser
Scott King
Committee Member
Jennifer VanGilder
Committee Member
Rebecca Evans
Department Chair
Jennifer VanGilder
Project Description
This paper uses synthetic control analysis to assess the long-term effects of structural adjustment policies on economic development. Focusing on Mexico as a case study, the findings indicate that these policies may have contributed to economic stagnation and widening inequality. By comparing actual outcomes with a synthetic counterfactual, the analysis reveals a notable divergence in performance over time. Reforms intended to stabilize the economy and promote growth—such as austerity, liberalization, and privatization—often led to reduced public investment, weakened institutions, and increased social vulnerability. The results support broader critiques of structural adjustment, suggesting that the costs of such interventions can outweigh their intended benefits. While the methodology has limitations, it offers valuable insights into the lasting consequences of policy choices and highlights the need for more inclusive approaches to economic reform.
Recommended Citation
Espinal, Daniel, "Simulated Recovery: Measuring the Impact of Structural Adjustment on Economic Development in Latin America" (2025). Business and Economics Honors Papers. 61.
https://digitalcommons.ursinus.edu/bus_econ_hon/61
Included in
Growth and Development Commons, International Economics Commons, Latin American Studies Commons
