Empirical evidence on the relationship between democracy and
economic reforms is limited to few reforms, countries, and years.
This paper studies the effect of democracy on the adoption of economic
reforms using a new dataset on reforms in the financial, capital
and banking sectors, product 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 scarce evidence that economic reforms foster democracy.
Our results are robust to the inclusion of a large variety of controls
and estimation strategies.
Giuliano, Paola, Prachi Mishra, and Antonio Spilimbergo.
"Democracy and Reforms: Evidence from a New Dataset."
American Economic Journal: Macroeconomics,
Political Processes: Rent-seeking, Lobbying, Elections, Legislatures, and Voting Behavior
Institutions and the Macroeconomy
Macroeconomic Policy, Macroeconomic Aspects of Public Finance, and General Outlook: General
Economics of Regulation
Formal and Informal Sectors; Shadow Economy; Institutional Arrangements
Development Planning and Policy: General