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Political Sustainability of Economic reforms : Dynamics and Analysis of Regional Economic Factors

Listed author(s):
  • Fidrmuc, J.

    (Tilburg University, Center For Economic Research)

This paper analyzes the political economy of the reform process theoretically and empirically.Building on the framework developed by Rodrik [1995], a two-sector model of a transition economy is constructed.This model is then used to study the dynamics of political support for the reforms.The key role is played by the pattern of flows between the state and private sectors and unemployment.It is shown that while the workers in the private sector always support rapid reforms, the workers in the state sector and the unemployed will support rapid reforms only at the outset of the transition.Later, state-sector workers and unemployed will vote for a reduction in the speed of reforms.The relationship between unemployment and support for the reforms is then tested empirically using regional data from the Czech Republic, Hungary, Poland and Slovakia.

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File URL: https://pure.uvt.nl/portal/files/525234/74.pdf
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Paper provided by Tilburg University, Center for Economic Research in its series Discussion Paper with number 1996-74.

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Date of creation: 1996
Handle: RePEc:tiu:tiucen:d1a86da9-8e64-4b65-afba-bddcaaa7984c
Contact details of provider: Web page: http://center.uvt.nl

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  1. Alberto Alesina & Gerald D. Cohen & Nouriel Roubini, 1991. "Macroeconomic Policy and Elections in OECD Democracies," NBER Working Papers 3830, National Bureau of Economic Research, Inc.
  2. Alberto Alesina & Gerald D. Cohen & Nouriel Roubini, 1992. "Macroeconomic Policy And Elections In Oecd Democracies," Economics and Politics, Wiley Blackwell, vol. 4(1), pages 1-30, 03.
  3. Rodrik Dani, 1995. "The Dynamics of Political Suppport for Reform in Economies in Transition," Journal of the Japanese and International Economies, Elsevier, vol. 9(4), pages 403-425, December.
  4. Jeffrey D. Sachs, 1989. "Social Conflict and Populist Policies in Latin America," NBER Working Papers 2897, National Bureau of Economic Research, Inc.
  5. Cohen, Gerald & Alesina, Alberto & Roubini, Nouriel, 1992. "Macroeconomic Policy and Elections in OECD Democracies," Scholarly Articles 4553023, Harvard University Department of Economics.
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