The inverse domino effect: are economic reforms contagious?

Gassebner, M., Gaston, N. and Lamla, M. J. (2011) The inverse domino effect: are economic reforms contagious? International Economic Review, 52 (1). pp. 183-200. ISSN 0020-6598 doi: 10.1111/j.1468-2354.2010.00624.x

Abstract/Summary

This article examines whether a country's economic reforms are affected by reforms adopted by other countries. Our theoretical model predicts that reforms are more likely when factors of production are internationally mobile and reforms are pursued in other economies. Using the change in the Index of Economic Freedom as the measure of market-liberalizing reforms and panel data (144 countries, 1995–2006), we test our model. We find evidence of the spillover of reforms. 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.

Item Type	Article
URI	https://reading-clone.eprints-hosting.org/id/eprint/34879
Identification Number/DOI	10.1111/j.1468-2354.2010.00624.x
Refereed	Yes
Divisions	No Reading authors. Back catalogue items Arts, Humanities and Social Science > School of Politics, Economics and International Relations > Economics
Publisher	Wiley
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