DEVELOPING A STRUCTURAL REFORM INDEX FOR ARMENIA: METHODOLOGY AND ECONOMIC IMPLICATIONS

Abstract

The purpose of this paper is to develop and analyze a structural reform index (SRI) for the Republic of Armenia, aimed at identifying the trends, sectoral patterns, and underlying dynamics of structural reforms. According to the results of this study, reform activity in Armenia has been episodic and strongly influenced by crisis events, political transitions, and the presence or absence of external policy anchors. Fiscal and financial reforms dominate in contribution, while social and monetary reforms remain underdeveloped. The findings suggest that the sustainability of structural reform efforts in Armenia is constrained by limited institutional capacity, weak implementation follow-through, and reform asymmetries across sectors. The proposed index provides an analytically grounded and replicable instrument for tracking reform momentum and informing public policy design.
Keywords: structural reform index, public policy, principal component analysis (PCA), sectoral reform, institutional change.