Democracy and Reforms

Paola Giuliano, Prachi Mishra () and Antonio Spilimbergo
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Prachi Mishra: International Monetary Fund

No 4032, IZA Discussion Papers from Institute of Labor Economics (IZA)

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.

Keywords: political economy; economic liberalization; transition (search for similar items in EconPapers)
JEL-codes: E6 O57 (search for similar items in EconPapers)
Pages: 43 pages
Date: 2009-02
New Economics Papers: this item is included in nep-dev
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Citations: View citations in EconPapers (5)

Published - published in: American Economic Journal: Macroeconomics, 2013, 5(4), 179-204

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Related works:
Working Paper: Democracy and Reforms (2010)
Working Paper: Democracy and Reforms (2009)
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Persistent link: https://EconPapers.repec.org/RePEc:iza:izadps:dp4032

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