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Democracy and Reforms: Evidence from a New Dataset

  • Paola Giuliano

    (UCLA, NBER, CEPR and IZA)

  • Prachi Mishra


  • Antonio Spilimbergo

    (IMF, CEPR, and WDI)

Empirical evidence on the relationship between democracy and economic reforms is limited to few reforms, countries, and years. This paper studies the impact of democracy on the adoption of economic reforms using a new dataset on reforms in the financial, capital and banking sectors, product 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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Paper provided by Center for Advanced Research in Finance, Faculty of Economics, The University of Tokyo in its series CARF F-Series with number CARF-F-247.

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Length: 44 pages
Date of creation: May 2011
Date of revision:
Handle: RePEc:cfi:fseres:cf247
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