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The rise and decline of nations: the dynamic properties of institutional reform 1

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  • SOBEL, RUSSELL S.

Abstract

While it is now well established in the literature that countries with better policies and institutions, as measured by the Economic Freedom of the World index, have better outcomes in terms of prosperity, growth, and measures of human well-being. However, we know little about the process of institutional reform – that is why and how country policies undergo major changes either upward or downward in their levels of economic freedom. This research attempts to provide a systematic overview of this process, by uncovering what the data really show about this transition process. Institutional declines occur more abruptly than institutional improvements, and free trade appears to be a key ‘first mover’ in cases of large institutional change.

Suggested Citation

  • Sobel, Russell S., 2017. "The rise and decline of nations: the dynamic properties of institutional reform 1," Journal of Institutional Economics, Cambridge University Press, vol. 13(3), pages 549-574, September.
    • Handle: RePEc:cup:jinsec:v:13:y:2017:i:03:p:549-574_00
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    Cited by:

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    3. J. Brandon Bolen & Claudia R. Williamson, 2019. "The Path of Reform: The Consequences of Institutional Volatility," Kyklos, Wiley Blackwell, vol. 72(3), pages 400-425, August.
    4. Ryan H. Murphy, 2019. "The long‐run effect of government ideology on economic freedom," Economic Affairs, Wiley Blackwell, vol. 39(1), pages 101-114, February.
    5. Claudia R. Williamson, 2021. "Culture, democracy and regulation," Constitutional Political Economy, Springer, vol. 32(1), pages 98-126, March.
    6. J. Brandon Bolen & Russell S. Sobel, 2020. "Does Balance Among Areas of Institutional Quality Matter for Economic Growth?," Southern Economic Journal, John Wiley & Sons, vol. 86(4), pages 1418-1445, April.
    7. Sonia Kumari Selvarajan & V. G. R. Chandran, 2024. "Financial Inclusion Trajectories: Geographical Dispersion, Convergence, and Development Implications," The European Journal of Development Research, Palgrave Macmillan;European Association of Development Research and Training Institutes (EADI), vol. 36(4), pages 897-924, August.
    8. Saunoris, James W. & Payne, James E. & Sobel, Russell S., 2025. "Identifying the ‘deep roots’ of economic freedom with implications for policy and economic reform," Journal of Policy Modeling, Elsevier, vol. 47(1), pages 211-227.
    9. James E. Payne & James W. Saunoris & Saban Nazlioglu & Russell S. Sobel, 2025. "Correction to: What factors drive cross‑country economic freedom convergence?," Public Choice, Springer, vol. 204(3), pages 561-561, September.
    10. Justin Callais & Kerianne Lawson, 2024. "Underperforming reformers: Examining disappointing cases of economic reforms," Kyklos, Wiley Blackwell, vol. 77(3), pages 593-615, August.
    11. Ryan H. Murphy, 2025. "Social Repression and Variation within the Human Freedom Index," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 177(3), pages 1193-1212, April.

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