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Democracy and Reforms

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  • Giuliano, Paola

    ()
    (University of California, Los Angeles)

  • Mishra, Prachi

    ()
    (International Monetary Fund)

  • Spilimbergo, Antonio

    ()
    (International Monetary Fund)

Abstract

Empirical evidence on the relationship between democracy and economic reforms is scarce, limited to few reforms and countries and for few years. This paper studies the impact of democracy on the adoption of economic reforms using a new dataset on reforms in the financial, capital, public, and banking sectors, product and labor markets, agriculture, and trade for 150 countries over the period 1960-2004. Democracy has a positive and significant impact on the adoption of economic reforms but there is no evidence that economic reforms foster democracy. Our results are robust to the inclusion of a large variety of controls and estimation strategies.

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Bibliographic Info

Paper provided by Institute for the Study of Labor (IZA) in its series IZA Discussion Papers with number 4032.

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Length: 43 pages
Date of creation: Feb 2009
Date of revision:
Publication status: forthcoming in: American Economic Journal: Macroeconomics
Handle: RePEc:iza:izadps:dp4032

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Keywords: transition; economic liberalization; political economy;

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References

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Citations

Blog mentions

As found by EconAcademics.org, the blog aggregator for Economics research:
  1. Demokrati och ekonomiska reformer
    by Niclas Berggren in Nonicoclolasos on 2010-10-13 03:26:15
Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
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Cited by:
  1. Cagatay Bircan & David Hauner & Alessandro Prati, 2012. "The interest group theory of financial development: evidence from regulation," Working Papers, European Bank for Reconstruction and Development, Office of the Chief Economist 150, European Bank for Reconstruction and Development, Office of the Chief Economist.
  2. Anderson, Kym & Rausser, Gordon & Swinnen, Johan, 2012. "Political Economy of Public Policies: Insights from Distortions to Agricultural and Food Markets," CEPR Discussion Papers, C.E.P.R. Discussion Papers 9221, C.E.P.R. Discussion Papers.
  3. Abdul Abiad & Petya Koeva Brooks & Irina Tytell & Daniel Leigh & Ravi Balakrishnan, 2009. "What’S the Damage? Medium-Term Output Dynamics After Banking Crises," IMF Working Papers, International Monetary Fund 09/245, International Monetary Fund.
  4. Alessandro Olper & Valentina Raimondi, 2012. "Electoral Rules, Forms of Government and Redistributive Policy: Evidence from Agriculture and Food Policies," LICOS Discussion Papers, LICOS - Centre for Institutions and Economic Performance, KU Leuven 30512, LICOS - Centre for Institutions and Economic Performance, KU Leuven.
  5. Jan Fałkowski & Alessandro Olper, 2014. "Political competition and policy choices: the evidence from agricultural protection," Agricultural Economics, International Association of Agricultural Economists, International Association of Agricultural Economists, vol. 45(2), pages 143-158, 03.

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