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What Makes Reforms Likely?: Timing and Sequencing of Structural Reforms in Latin America

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  • Eduardo Lora

Abstract

The wave of structural reforms in Latin America and elsewhere has stimulated the development of a wide body of theoretical literature on the political economy of reform, i.e., the study of the political constraints that condition the timing, speed and sequencing of reforms. This paper tests some of the hypotheses associated with these theoretical models, using a set of structural reform indicators for approximately twenty Latin American countries for the period 1985-1995. Although there is strong support for some hypotheses, recent reforms in Latin America cannot be adequately explained without either better theories or better data.

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Bibliographic Info

Paper provided by Inter-American Development Bank in its series IDB Publications with number 6472.

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Date of creation: Jun 2000
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Handle: RePEc:idb:brikps:6472

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Keywords: Economics; Poverty; WP-424;

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  1. Drazen, A. & Grilli, V., 1991. "The Benefits of Crisis for Economic Reforms," Papers, Tel Aviv 27-91, Tel Aviv.
  2. Eduardo Fernández-Arias & Peter Montiel, 1997. "Reform and Growth in Latin America: All Pain, No Gain?," Research Department Publications, Inter-American Development Bank, Research Department 4078, Inter-American Development Bank, Research Department.
  3. Tommasi, Mariano & Velasco, Andres, 1995. "Where are we in the Political Economy of Reform?," Working Papers, C.V. Starr Center for Applied Economics, New York University 95-20, C.V. Starr Center for Applied Economics, New York University.
  4. Easterly, William & Loayza, Norman & Montiel, Peter, 1997. "Has Latin America's post-reform growth been disappointing?," Policy Research Working Paper Series, The World Bank 1708, The World Bank.
  5. Eduardo Lora, 2001. "Structural reforms in Latin America: What has been reformed and how to measure it?," Research Department Publications, Inter-American Development Bank, Research Department 4287, Inter-American Development Bank, Research Department.
  6. Alesina, Alberto & Drazen, Allan, 1991. "Why Are Stabilizations Delayed?," American Economic Review, American Economic Association, American Economic Association, vol. 81(5), pages 1170-88, December.
  7. Dewatripont, Mathias & Roland, Gérard, 1993. "The Design of Reform Packages Under Uncertainty," CEPR Discussion Papers, C.E.P.R. Discussion Papers 860, C.E.P.R. Discussion Papers.
  8. Roubini, Nouriel & Sachs, Jeffrey D., 1989. "Political and economic determinants of budget deficits in the industrial democracies," European Economic Review, Elsevier, Elsevier, vol. 33(5), pages 903-933, May.
  9. Eduardo Lora & Ugo Panizza, 2002. "Structural Reforms in Latin America under Scrutiny," Research Department Publications, Inter-American Development Bank, Research Department 4303, Inter-American Development Bank, Research Department.
  10. Haggard, Stephan & Webb, Steven B, 1993. "What Do We Know about the Political Economy of Economic Policy Reform?," World Bank Research Observer, World Bank Group, World Bank Group, vol. 8(2), pages 143-68, July.
  11. Mauro, Paolo, 1995. "Corruption and Growth," The Quarterly Journal of Economics, MIT Press, MIT Press, vol. 110(3), pages 681-712, August.
  12. Cesar Martinelli & Mariano Tommasi, 1993. "Sequencing of Economic Reforms in the Presence of Political Constraints," UCLA Economics Working Papers, UCLA Department of Economics 701, UCLA Department of Economics.
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