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Democracy, Market Liberalization and Political Preferences

  • Pauline Grosjean

    (Department of Mathematics [Berkeley] - University of California [Berkeley])

  • Claudia Senik

    (PSE - Paris School of Economics, PSE - Paris-Jourdan Sciences Economiques - CNRS - Centre National de la Recherche Scientifique - INRA - Institut National de la Recherche Agronomique - EHESS - École des hautes études en sciences sociales - ENS Paris - École normale supérieure - Paris - École des Ponts ParisTech (ENPC), UP4 - Université Paris-Sorbonne)

This paper questions the conventional wisdom concerning the sequencing of political and economic reforms in developing countries. We exploit the specific situation of frontier-zones as well as the considerable regional variations in culture and economic development in the countries of Central and Eastern Europe and the former Soviet Union. We estimate the impact of market development and democratization on subjective political preferences. Taking advantage of a new survey conducted in 2006 by the European Bank for Reconstruction and Development and the World Bank in 28 post-transition countries, we find a positive and significant effect of democracy on support for a market economy, but no effect of market liberalization on support for democracy. Our results are robust to the use of various indices of market liberalization and democracy and alternative measures of political preferences.

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File URL: https://halshs.archives-ouvertes.fr/halshs-00596078/document
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Paper provided by HAL in its series Post-Print with number halshs-00596078.

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Date of creation: Feb 2011
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Publication status: Published in The Review of Economics and Statistics, 2011, 93 (1), pp.365-381. <10.1162/REST_a_00062>
Handle: RePEc:hal:journl:halshs-00596078
DOI: 10.1162/REST_a_00062
Note: View the original document on HAL open archive server: https://halshs.archives-ouvertes.fr/halshs-00596078
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