Publication detail

Reform Redux: Measurement, Determinants and Reversals

Author(s): prof. Roman Horváth Ph.D., Nauro F. Campos
Type: Others
Year: 2006
Number: 0
Published in: CEPR Discussion Papers, No. 5673 (also in IZA DP, No. 2093 and IES WP, No. 16/06)
Publishing place:
Keywords: reform, liberalization, privatization, political economy, transition
JEL codes: E23, D72, H26, O17
Suggested Citation: Campos, Nauro and Horvath, Roman. 2006. Reform Redux: Measurement, Determinants and Reversals, CEPR Discussion Papers, No. 5673.
Abstract: We construct objective measures of privatization, internal and external liberalization reform efforts, across countries over time, and investigate their determinants, reversals and macroeconomic impacts. We find that GDP growth determines external liberalization and privatization, concentration of political power drives internal liberalization, and democracy underpins all three. We find that FDI inflows reduce the probability of privatization reversals, labour strikes increase that of internal liberalization reversals, and terms of trade shocks increase that of external liberalization reversals. We replicate previous studies and find that the macroeconomic effects of reform (when measured objectively) tend to be larger and more precisely estimated.


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