Abstract
This work addresses three policy-relevant empirical issues. First, how do banking crises affect financial reforms? It turns out that banking crises pro- duce a variety of reform patterns in the financial sector over time.
Second, do countries which reform their financial, product, and labor markets grow similarly? The results suggest that some countries benefit more from market- oriented reforms than others. Third, if some countries benefit more, could it be because various economies have markedly different firm-size distributions, and firms of different size grow differently after identical reforms? If firms of different size indeed grow differently after identical reforms, this could produce diverse growth outcomes across countries after similar reforms.