It is argued that crises open up a window of opportunity to implement policies that otherwise would not have the necessary political backing. We show that not only is the crises–reforms nexus unfounded in the data, but rather crises are associated with a reversal of liberalisation interventions depending on the institutional environment. We find that, in democratic countries, crises occurrences have no significant impact on liberalisation measures. On the contrary, after a crisis, autocracies reduce liberalisation in multiple economic sectors, which we interpret as the fear of regime change leading non-democratic rulers to please vested economic interests.

Gunes Gokmen, T.N. (2021). Policies in Hard Times: Assessing the Impact of Financial Crises on Structural Reforms. ECONOMIC JOURNAL, 131(638), 2529-2552 [10.1093/ej/ueab017].

Policies in Hard Times: Assessing the Impact of Financial Crises on Structural Reforms

Massimiliano Gaetano Onorato;
2021

Abstract

It is argued that crises open up a window of opportunity to implement policies that otherwise would not have the necessary political backing. We show that not only is the crises–reforms nexus unfounded in the data, but rather crises are associated with a reversal of liberalisation interventions depending on the institutional environment. We find that, in democratic countries, crises occurrences have no significant impact on liberalisation measures. On the contrary, after a crisis, autocracies reduce liberalisation in multiple economic sectors, which we interpret as the fear of regime change leading non-democratic rulers to please vested economic interests.
2021
Gunes Gokmen, T.N. (2021). Policies in Hard Times: Assessing the Impact of Financial Crises on Structural Reforms. ECONOMIC JOURNAL, 131(638), 2529-2552 [10.1093/ej/ueab017].
Gunes Gokmen, Tommaso Nannicini, Massimiliano Gaetano Onorato, Chris Papageorgiou
File in questo prodotto:
File Dimensione Formato  
EJ 2021.pdf

accesso aperto

Tipo: Versione (PDF) editoriale
Licenza: Licenza per Accesso Aperto. Creative Commons Attribuzione - Non commerciale (CCBYNC)
Dimensione 347.98 kB
Formato Adobe PDF
347.98 kB Adobe PDF Visualizza/Apri

I documenti in IRIS sono protetti da copyright e tutti i diritti sono riservati, salvo diversa indicazione.

Utilizza questo identificativo per citare o creare un link a questo documento: https://hdl.handle.net/11585/830575
Citazioni
  • ???jsp.display-item.citation.pmc??? ND
  • Scopus 5
  • ???jsp.display-item.citation.isi??? 4
social impact