Political constraints and economic reform: Empirical evidence from the post-communist transition in the 1990s

Abstract

Using data from transition economies, this paper examines linkages between political constraints and economic reforms. Estimation results suggest that progress in reform is positively associated with public support for reforms, which is affected by income inequality and expected individual performance during future reforms. These findings support influential theories that both ex post and ex ante political constraints are instrumental in determining the extent of progress in welfare-enhancing reforms. We also find evidence to support reform sequencing starting with a reform that is both popular and stimulatory to other reforms. Journal of Comparative Economics 34 (3) (2006) 446–466.