Economic reform when institutional quality is weak: The case of the Maghreb
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Economic reform when institutional quality is weak : The case of the Maghreb. / Addison, Anthony John; Baliamoune-Lutz, Mina.
In: Journal of Policy Modeling, Vol. 28, 2006, p. 1029-1043.Research output: Contribution to journal › Journal article › Research › peer-review
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TY - JOUR
T1 - Economic reform when institutional quality is weak
T2 - The case of the Maghreb
AU - Addison, Anthony John
AU - Baliamoune-Lutz, Mina
PY - 2006
Y1 - 2006
N2 - Institutional improvement can be a very slow and uncertain process when institutional quality is weak. In the meantime, countries have launched far-reaching economic reforms whose success is predicated on a large investment response. However, the uncertainties attending institutional reform can raise perceptions of risk, thereby muting investment responses. Using new values of institutional quality for three Maghreb countries (Algeria, Morocco and Tunisia), which we derive from fuzzy-set based transformations on freedom indices, we show that moving from low institutional quality to a stage of ‘partial improvement’ may reduce income per capita, with financial and trade reforms having unintended negative effects.
AB - Institutional improvement can be a very slow and uncertain process when institutional quality is weak. In the meantime, countries have launched far-reaching economic reforms whose success is predicated on a large investment response. However, the uncertainties attending institutional reform can raise perceptions of risk, thereby muting investment responses. Using new values of institutional quality for three Maghreb countries (Algeria, Morocco and Tunisia), which we derive from fuzzy-set based transformations on freedom indices, we show that moving from low institutional quality to a stage of ‘partial improvement’ may reduce income per capita, with financial and trade reforms having unintended negative effects.
U2 - 10.1016/j.jpolmod.2006.04.004
DO - 10.1016/j.jpolmod.2006.04.004
M3 - Journal article
VL - 28
SP - 1029
EP - 1043
JO - Journal of Policy Modeling
JF - Journal of Policy Modeling
SN - 0161-8938
ER -
ID: 335691208