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Democracy and Reforms

Author

Listed:
  • Prachi Mishra

    (IMF)

  • Antonio Spilimbergo

    (IMF)

  • Paola Giuliano

    (UCLA)

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.

Suggested Citation

  • Prachi Mishra & Antonio Spilimbergo & Paola Giuliano, 2010. "Democracy and Reforms," 2010 Meeting Papers 216, Society for Economic Dynamics.
  • Handle: RePEc:red:sed010:216
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    References listed on IDEAS

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    Cited by:

    1. Jan Fałkowski & Alessandro Olper, 2014. "Political competition and policy choices: the evidence from agricultural protection," Agricultural Economics, International Association of Agricultural Economists, vol. 45(2), pages 143-158, March.
    2. Olper, Alessandro & Raimondi, Valentina, 2013. "Electoral rules, forms of government and redistributive policy: Evidence from agriculture and food policies," Journal of Comparative Economics, Elsevier, pages 141-158.
    3. Abdul d 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 09/245, International Monetary Fund.

    More about this item

    JEL classification:

    • O57 - Economic Development, Innovation, Technological Change, and Growth - - Economywide Country Studies - - - Comparative Studies of Countries
    • E6 - Macroeconomics and Monetary Economics - - Macroeconomic Policy, Macroeconomic Aspects of Public Finance, and General Outlook

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