The golden hello and political transitions

Toke Aidt, Facundo Albornoz and Martin Gassebner

Journal of Comparative Economics, 2018, vol. 46, issue 1, 157-173

Abstract: We analyze the influence of IMF and World Bank programs on political regime transitions. We develop an extended version of Acemoglu and Robinson’s [American Economic Review 91, 2001] model of political transitions to show how the anticipation of new loans from international financial institutions can trigger political transitions which would not otherwise have taken place. We test this unexplored implication of the theory empirically. We find that the anticipation of receiving new loan programs immediately after a political regime transition increases the probability of a transition from autocracy to democracy and reduces the probability of democratic survival.

Keywords: Political transitions; Democracy; Autocracy; IMF; World bank (search for similar items in EconPapers)
JEL-codes: D72 F53 F59 O19 (search for similar items in EconPapers)
Date: 2018
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Citations: View citations in EconPapers (10)

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Related works:
Working Paper: The Golden Hello and Political Transitions (2012)
Working Paper: The Golden Hello and Political Transitions (2012)
Working Paper: The Golden Hello and Political Transitions (2012)
Working Paper: The Golden Halo and Political Transitions (2010)
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Persistent link: https://EconPapers.repec.org/RePEc:eee:jcecon:v:46:y:2018:i:1:p:157-173

DOI: 10.1016/j.jce.2017.03.004

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