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Timing and sequencing of reforms: Competing views


  • Funke, Norbert


Opposing recommendations with respect to key sequencing issues characterize the controversy between the advocates of the orthodox (technocratic) approach and the recently popularized political economy approach. It is suggested that the concept of credibility provides in many cases a fruitful link between both categories of proposals. Historical lessons as well as the recent experience of developing countries and economies in transition support this view and help determine the proper reform sequence. Stressing the role of initial conditions, different sequencing tactics are recommended for developing countries and postsocialist economies. In particular, the optimal order of domestic financial market reform and privatization differs for both groups of countries.

Suggested Citation

  • Funke, Norbert, 1993. "Timing and sequencing of reforms: Competing views," Kiel Working Papers 552, Kiel Institute for the World Economy (IfW).
  • Handle: RePEc:zbw:ifwkwp:552

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    References listed on IDEAS

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    Cited by:

    1. Sebastian Edwards, 2009. "Sequencing of Reforms, Financial Globalization, and Macroeconomic Vulnerability," NBER Chapters,in: Financial Globalization, 20th Anniversary Conference, NBER-TCER-CEPR National Bureau of Economic Research, Inc.
    2. Andrew Feltenstein & Saleh M. Nsouli, 2003. ""Big Bang" Versus Gradualism in Economic Reforms: An Intertemporal Analysis with an Application to China," IMF Staff Papers, Palgrave Macmillan, vol. 50(3), pages 1-6.
    3. Schweickert, Rainer, 2003. "Vom Washington-Konsens zum Post-Washington-Dissens? Glaubwürdigkeit, Timing und Sequencing wirtschaftlicher Reformen," Open Access Publications from Kiel Institute for the World Economy 3082, Kiel Institute for the World Economy (IfW).
    4. Piazolo, Daniel, 1997. "Gaining credibility and enhancing economic growth through regional integration: The case for EU membership of Eastern Europe," Kiel Working Papers 837, Kiel Institute for the World Economy (IfW).
    5. Kornai, János, 1996. "Négy jellegzetesség. A magyar fejlődés politikai gazdaságtani megközelítésben. Második rész
      [Four characteristic features. Development in Hungary from the aspect of political economy - II]
      ," Közgazdasági Szemle (Economic Review - monthly of the Hungarian Academy of Sciences), Közgazdasági Szemle Alapítvány (Economic Review Foundation), vol. 0(1), pages 1-29.
    6. Timothy Kehoe & Sewon Hur & Kim Ruhl & Jose Asturias, 2015. "The Interaction of Entry Barriers and Financial Frictions in Growth," 2015 Meeting Papers 792, Society for Economic Dynamics.
    7. Franz, Wolfgang, 1994. "Central and East European labor markets in transition: Developments, causes, and cures," Discussion Papers 19, University of Konstanz, Center for International Labor Economics (CILE).
    8. Berggren, Niclas & Daunfeldt, Sven-Olov & Hellström, Jörgen, 2016. "Does social trust speed up reforms? The case of central-bank independence," Journal of Institutional Economics, Cambridge University Press, vol. 12(02), pages 395-415, June.
    9. Raiser, Martin & Nunnenkamp, Peter, 1993. "Output decline and recovery in Central Europe: the role of incentives before, during and after privatisation," Kiel Working Papers 601, Kiel Institute for the World Economy (IfW).
    10. Geneviève Marchini, 1996. "Ouverture financière, stabilisation et transformation productive au Mexique, 1988-1994," Revue Tiers Monde, Programme National Persée, vol. 37(146), pages 385-405.
    11. Nunnenkamp, Peter, 1998. "Wirtschaftliche Aufholprozesse und Globalisierungskrisen in Entwicklungsländern: Implikationen für die nationale Wirtschaftspolitik und den globalen Ordnungsrahmen," Kiel Discussion Papers 328, Kiel Institute for the World Economy (IfW).
    12. Bhattacharya, Rina, 1997. "Pace, sequencing and credibility of structural reforms," World Development, Elsevier, vol. 25(7), pages 1045-1061, July.
    13. Jochem, Axel, 2000. "Timing and sequenzing der monetären Integration," Working Papers in Economics 2000,2, Bundeswehr University Munich, Economic Research Group.
    14. Alshyab, Nooh, 2013. "The Political Economy of Reform and Development of the Washington Consensus," MPRA Paper 46014, University Library of Munich, Germany.
    15. Masahiro Kawai & Shinji Takagi, 2010. "A Survey of the Literature on Managing Capital Inflows," Chapters,in: Managing Capital Flows, chapter 2 Edward Elgar Publishing.
    16. Nunnenkamp, Peter, 2001. "Liberalization and regulation of international capital flows: where the opposites meet," Kiel Working Papers 1029, Kiel Institute for the World Economy (IfW).
    17. Juan Zalduendo, 2005. "Pace and Sequencing of Economic Policies," IMF Working Papers 05/118, International Monetary Fund.
    18. Raiser, Martin, 1994. "Lessons for whom, from whom? The transition from socialism in China and Central Eastern Europe compared," Kiel Working Papers 630, Kiel Institute for the World Economy (IfW).
    19. Edwards, Sebastian, 2009. "Sequencing of reforms, financial globalization, and macroeconomic vulnerability," Journal of the Japanese and International Economies, Elsevier, vol. 23(2), pages 131-148, June.
    20. Hemmer, Hans-Rimbert & Marienburg, Holger, 2000. "Ökonomische Strukturanpassungspolitik in Entwicklungsländern," Discussion Papers in Development Economics 29, Justus Liebig University Giessen, Institute for Development Economics.

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