The inverse domino effect: Are economic reforms contagious?

Arbeitspapier

This paper examines whether a country's economic reforms are affected by reforms adopted by other countries. A simple model of economic reforms is developed to motivate the econometric work. Unsurprisingly, the model predicts that reforms are more likely when factors of production are internationally mobile and reforms are pursued in other economies. More interesting is the finding that reforms are not driven by greater trade openness. Using the change in the Index of Economic Freedom as the measure of market-liberalising reforms, we examine two issues. Using data for a panel of 144 countries and the years 1995-2006, we identify the most important channels through which reforms are transmitted from country to country. We find evidence of the importance of reforms in other countries. Moreover, consistent with our model, international trade is not a vehicle for the diffusion of economic reforms, rather the most important mechanism is geographical or cultural proximity.

Angaben zum Objekt

• Sprache: Englisch

Verweise und Beziehungen

• Erschienen in: Series: KOF Working Papers ; No. 187

Klassifikation und Themen

• Klassifikation: Wirtschaft ; State and Local Taxation, Subsidies, and Revenue ; Intergovernmental Relations; Federalism; Secession ; Comparative Analysis of Economic Systems ; Comparative Studies of Countries
• Thema: Economic reforms ; economic freedom ; resource flow models ; spatial interdependence ; Wirtschaftsreform ; Ansteckungseffekt ; Panel ; Schätzung ; Welt

Beteiligte, Orts- und Zeitangaben

• Ereignis: Geistige Schöpfung
• (wer): Gassebner, Martin ; Gaston, Noel ; Lamla, Michael
• Ereignis: Veröffentlichung
• (wer): ETH Zurich, KOF Swiss Economic Institute
• (wo): Zurich
• (wann): 2007

Weitere Informationen

• DOI: doi:10.3929/ethz-a-005552205
• Handle: http://hdl.handle.net/10419/50436
• Letzte Aktualisierung: 10.03.2025, 11:43 MEZ