IDEAS home Printed from https://ideas.repec.org/p/wfo/wpaper/y2007i300.html
   My bibliography  Save this paper

The Impact of Growth Performance and Political Regime Type on Economic Policy Liberalization

Author

Listed:
  • Hans Pitlik

Abstract

The paper investigates empirically the interaction between economic growth performance and political institutions in producing free-market reform. In particular, we explore whether political regime types systematically shape government policy responses to good or bad growth performance, employing panel econometric techniques and using recently updated data for economic reform and political institutions. Contrary to conventional wisdom we find that a bad growth performance is conducive to reforms only in democracies, but not in autocracies. Democratic rule seems to be favourable for policy liberalisation in general, but a very good growth performance weakens liberalisation incentives considerably.

Suggested Citation

  • Hans Pitlik, 2007. "The Impact of Growth Performance and Political Regime Type on Economic Policy Liberalization," WIFO Working Papers 300, WIFO.
    • Handle: RePEc:wfo:wpaper:y:2007:i:300
    as

    Download full text from publisher

    File URL: https://www.wifo.ac.at/wwa/pubid/29858
    File Function: abstract
    Download Restriction: no
    ---><---

    Other versions of this item:

    References listed on IDEAS

    as
    1. Jean Paul Azam & Robert Bates & Bruno Biais, 2009. "Political Predation And Economic Development," Economics and Politics, Wiley Blackwell, vol. 21(2), pages 255-277, July.
    2. Mr. A. J Hamann & Mr. Alessandro Prati, 2002. "Why Do Many Disinflations Fail? the Importance of Luck, Timing, and Political Institutions," IMF Working Papers 2002/228, International Monetary Fund.
    3. Keefer, Philip, 2004. "What does political economy tell us about economic development - and vice versa?," Policy Research Working Paper Series 3250, The World Bank.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Michele Peruzzi & Alessio Terzi, 2018. "Growth Accelerations Strategies," CID Working Papers 91a, Center for International Development at Harvard University.
    2. Busse, Matthias & Hefeker, Carsten, 2007. "Political risk, institutions and foreign direct investment," European Journal of Political Economy, Elsevier, vol. 23(2), pages 397-415, June.
    3. Tao Kong, 2011. "Governance Quality and Economic Growth," ANU Working Papers in Economics and Econometrics 2011-537, Australian National University, College of Business and Economics, School of Economics.
    4. Timothy Besley & Torsten Persson, 2011. "Pillars of Prosperity: The Political Economics of Development Clusters," Economics Books, Princeton University Press, edition 1, number 9624.
    5. Bryan K. Ritchie, 2010. "Systemic Vulnerability and Sustainable Economic Growth," Books, Edward Elgar Publishing, number 13731.
    6. Bonfiglioli, Alessandra & Gancia, Gino, 2015. "Economic Uncertainty and Structural Reforms," CEPR Discussion Papers 10937, C.E.P.R. Discussion Papers.
    7. Voigt, Stefan, 2011. "Empirical constitutional economics: Onward and upward?," Journal of Economic Behavior & Organization, Elsevier, vol. 80(2), pages 319-330.
    8. Johnson Gwatipedza & Thorsten Janus, 2019. "Public investment under autocracy and social unrest," Economics and Politics, Wiley Blackwell, vol. 31(1), pages 112-135, March.
    9. Temple, Jonathan R.W., 2010. "Aid and Conditionality," Handbook of Development Economics, in: Dani Rodrik & Mark Rosenzweig (ed.), Handbook of Development Economics, edition 1, volume 5, chapter 0, pages 4415-4523, Elsevier.
    10. Deval Desai & Michael Woolcock, 2012. "The politics of rule of law systems in developmental states: 'political settlements' as a basis for promoting effective justice institutions for marginalized groups," Global Development Institute Working Paper Series esid-008-12, GDI, The University of Manchester.
    11. Daniel Nepelski & Giuditta De Prato, 2020. "Technological complexity and economic development," Review of Development Economics, Wiley Blackwell, vol. 24(2), pages 448-470, May.
    12. Francisco Veiga, 2008. "Why do stabilizations fail?," Journal of Economic Policy Reform, Taylor and Francis Journals, vol. 11(2), pages 135-149.
    13. Besley, Timothy & Kudamatsu, Masayuki, 2007. "Making autocracy work," LSE Research Online Documents on Economics 3764, London School of Economics and Political Science, LSE Library.
    14. Galasso, Vincenzo & Nunnari, Salvatore, 2019. "The Economic Effects of Electoral Rules: Evidence from Unemployment Benefits," Quarterly Journal of Political Science, now publishers, vol. 14(3), pages 259-291, July.
    15. Martin Ardanaz & Carlos Scartascini, 2014. "The economic effects of constitutions: do budget institutions make forms of government more alike?," Constitutional Political Economy, Springer, vol. 25(3), pages 301-329, September.
    16. Marc Hofstetter, 2008. "Why Have So Many Disinflations Succeeded?," Contemporary Economic Policy, Western Economic Association International, vol. 26(1), pages 89-106, January.
    17. Alessandra Bonfiglioli and Gino Gancia, 2010. "The Political Cost of Reforms," Working Papers 507, Barcelona School of Economics.
    18. Athaulla A Rasheed, 2020. "Framing Metagovernance in the Context of Developing Democracies: An Institutionalist Viewpoint," Journal of Public Administration and Governance, Macrothink Institute, vol. 10(3), pages 91111-91111, December.
    19. Dixit Avinash K, 2010. "Democracy, Autocracy and Bureaucracy," Journal of Globalization and Development, De Gruyter, vol. 1(1), pages 1-47, January.
    20. Toledo, Arcelia & Hernández, José de la Paz & Griffin, Denis, 2010. "Incentives and the growth of Oaxacan subsistence businesses," Journal of Business Research, Elsevier, vol. 63(6), pages 630-638, June.

    More about this item

    Keywords

    democracy; crisis hypothesis; market-oriented reform; political credibility;
    All these keywords.

    NEP fields

    This paper has been announced in the following NEP Reports:

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:wfo:wpaper:y:2007:i:300. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Florian Mayr (email available below). General contact details of provider: https://edirc.repec.org/data/wifooat.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.