Political and Economic Liberalization: Is this Relationship Non-Linear?

37 Pages Posted: 18 Feb 2007

See all articles by Leone Leonida

Leone Leonida

University of London; University of Messina

Dario Maimone Ansaldo Patti

University of Essex; University of Messina

Pietro Navarra

University of Messina - Institute of Economics and Finance; London School of Economics & Political Science - CPNSS

Date Written: February 2007

Abstract

Why high levels of market liberalization can be supported by both repressive and liberal political regimes? Drawing from Acemoglu and Robinson (2006), we use a large dataset of world economies and document the existence of a U-shaped relationship between political and economic liberalization. This functional form explains the ongoing dynamics in the relationship between democratization and economic liberalization in the light of the political calculus that incumbent governments make when are confronted with policy decisions.

Keywords: Democratization, Economic Liberalization, Generalized Method of Moments

JEL Classification: C23, D72, O38, P16

Suggested Citation

Leonida, Leone and Maimone Ansaldo Patti, Dario and Maimone Ansaldo Patti, Dario and Navarra, Pietro, Political and Economic Liberalization: Is this Relationship Non-Linear? (February 2007). Available at SSRN: https://ssrn.com/abstract=963635 or http://dx.doi.org/10.2139/ssrn.963635

Leone Leonida

University of London ( email )

Mile End Road
London, E1 4NS
United Kingdom

University of Messina ( email )

Piazza Pugliatti, 1
Messina, 98122
Italy

Dario Maimone Ansaldo Patti

University of Messina

Piazza Pugliatti, 1
Messina, Messina 981223
Italy
+39090719202 (Phone)
+39090719202 (Fax)

University of Essex ( email )

Wivenhoe Park
Colchester, CO4 3SQ
United Kingdom

Pietro Navarra (Contact Author)

University of Messina - Institute of Economics and Finance ( email )

Piazza Pugliatti 1
Messina
Sicilia, 98122
Italy
39-090-676-4446 (Phone)
39-090-292-0014 (Fax)

London School of Economics & Political Science - CPNSS ( email )

Houghton Street
London, WC2A 2AE
United Kingdom
44-207-955-6820 (Phone)