Financial Liberalization and Reversals: Political and Economic Determinants

        with Fabrizio Coricelli

        Published in Economic Policy (July 2012) pp. 483513  (PDF)

        What accounts for the dynamics of financial reforms? This paper identifies the
        political regime as one of the main factors. Focusing on democratization and
        financial reform, it puts forward novel evidence for a U-shaped relation, across
        countries and over time, for different reform measures and a wide range of estimators.
        Partial democracy is a main obstacle to financial reforms and democratization,
        when incomplete, may lead to severe financial reform reversals.

        Data sets                          transition countries       whole_world

        Web appendices             theoretical model           further econometric results

        Working paper version available as           IZA DP 4338      CEPR DP 7393

        This paper was featured in a VOX column

                                                                                          Back to Published Papers List