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

Hans Pitlik

No 300, WIFO Working Papers from WIFO

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.

Keywords: crisis hypothesis; democracy; market-oriented reform; political credibility (search for similar items in EconPapers)
Pages: 28 pages
Date: 2007-08
New Economics Papers: this item is included in nep-cdm and nep-pol
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Journal Article: The Impact of Growth Performance and Political Regime Type on Economic Policy Liberalization (2008)
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Persistent link: https://EconPapers.repec.org/RePEc:wfo:wpaper:y:2007:i:300

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