The Political Economy of Financial Reform: de Jure Liberalization vs. de Facto Implementation.

Over the past three decades, numerous countries have engaged in financial reform, prompting widespread interest in the sources of this development. Virtually all of the studies conducted on this topic, however, have focused on explaining neoliberal policy adoption in the financial sector, without ad...

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Publicado en:International Studies Quarterly Vol. 63; no. 3; pp. 589 - 603
Autores principales: Henisz, Witold J, Mansfield, Edward D
Formato: Artículo
Publicado: Oxford University Press / USA Sep2019
Materias:
Acceso en línea:Ver este registro en EBSCOhost
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        atl: The Political Economy of Financial Reform: de Jure Liberalization vs. de Facto Implementation.
      aug:
        au:
          Henisz, Witold J
          Mansfield, Edward D
        affil: University of Pennsylvania
      su:
        Economic reform
        Democracy
        Political opposition
        Political economic analysis
        Financial liberalization
        Neoliberalism
      sug:
        subj:
          Economic reform
          Democracy
          Political opposition
          Political economic analysis
          Financial liberalization
          Neoliberalism
      ab: Over the past three decades, numerous countries have engaged in financial reform, prompting widespread interest in the sources of this development. Virtually all of the studies conducted on this topic, however, have focused on explaining neoliberal policy adoption in the financial sector, without addressing whether the adopted reforms actually generate neoliberal economic outcomes. This gap in the literature is important because many policy reforms are not implemented or enforced. In this article, we conduct one of the first studies of the conditions under which de jure financial reforms are implemented, yielding de facto financial liberalization. We argue that democracy inhibits de facto financial reform when society at large is dissatisfied with government. Under these circumstances, democratic officials may be tempted to announce but not to follow through on financial policy liberalization or be unable to follow through, either fearing or facing opportunistic political opposition from legislative or partisan veto players who either represent or seek the electoral support of interest groups harmed by implementing financial reforms. Based on an analysis of ninety countries from 1980–2005 corroborated by a series of illustrative case studies, we find considerable support for this argument.
      pubtype: Academic Journal
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      src: R
    language: English
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