EconPapers    
Economics at your fingertips  
 

What makes reforms likely: Political economy determinants of reforms in Latin America

Eduardo Lora () and Mauricio Olivera ()

Journal of Applied Economics, 2004, vol. 7, 99-135

Abstract: The purpose of this paper is to test the main hypotheses of the recent theoretical literature on the political economy of reform for the case of the Latin American countries between 1985 and 1995. The paper first reviews the literature and extracts the main testable hypotheses. Then, a system of indices that measure the extent of reform in five policy areas is presented. These indices are used as the dependent variables in panel regressions where the main explanatory variables are indicators of crisis, political variables and indicators of channels of contagion. We find very strong support for the well-known hypothesis that crises make reform viable and also for the (less theoretically sound) hypotheses that reforms are more likely at the beginning of government periods. None of the hypotheses on the role of political and distributional variables, the importance of compensation schemes or contagion, finds support in our results. Rather disappointingly, however, most of the reforms seem to have responded to a process of convergence.

Keywords: structural reforms; political economy; Latin America (search for similar items in EconPapers)
JEL-codes: D78 D72 C52 (search for similar items in EconPapers)
Date: 2004
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (38) Track citations by RSS feed

Downloads: (external link)
https://ucema.edu.ar/publicaciones/download/volumen7/lora.pdf (application/pdf)

Related works:
Journal Article: What makes reforms likely: Political economy determinants of reforms in Latin America (2004) Downloads
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:cem:jaecon:v:7:y:2004:n:1:p:99-135

Access Statistics for this article

Journal of Applied Economics is currently edited by Germán Coloma and Mariana Conte Grand and Jorge M. Streb

More articles in Journal of Applied Economics from Universidad del CEMA Contact information at EDIRC.
Bibliographic data for series maintained by Valeria Dowding ().

 
Page updated 2020-11-24
Handle: RePEc:cem:jaecon:v:7:y:2004:n:1:p:99-135