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Democracy, Structural Reform and Quality of Government in Latin America: A time-series cross-sectional analysis

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Abstract:

For decades, it was widely assumed that the reasons behind the poor performance of Latin American governments were the absence of democratic elections or the problems of an overgrown state. Yet, recent experience in Latin American democracies suggest that it is plainly wrong to assume that regime change or market reforms lead automatically to improved governance, and therefore it is necessary to understand the determinants of the quality of government.
This paper is an attempt to move forward the discussion by analyzing two of the most relevant variables identified in this literature with time-series, cross-sectional data for the Latin American region, and employing data on quality of government that includes three dimensions of the quality of government (professional bureaucracy, lack of corruption and law enforcement). The empirical analysis shows that we can have a richer understanding of how democracy and structural adjustment improve the quality of government if we look at how their components affect our dependent variable. We now know that regime change or economic reform involve different mechanisms, and that each of these mechanisms behave differently, and it should not be assumed that they will follow the same dynamics.
Thus, the main argument of this paper is that, behind those broad aggregate indicators, there are specific components at work. In the case of democracy, it shows that political participation has a negative effect on the quality of government, political constraints on the executive have a significant positive effect, and free press and electoral competition have no significant impact. For structural adjustment, this study suggests that neither government size nor fiscal discipline have an effect on the quality of government once “openness to the world economy” is included in the specification. Is this latter variable what explains variation in the quality of government in the region.

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govern (221), qualiti (139), democraci (87), polit (83), variabl (77), corrupt (74), compon (60), effect (59), econom (57), indic (55), countri (53), polici (48), latin (43), structur (41), index (41), reform (36), 1 (35), analysi (34), measur (34), use (32), public (30),

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Latin America, quality of government, democratization, structural adjustment
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Name: Midwest Political Science Association
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http://www.indiana.edu/~mpsa/


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Cejudo, Guillermo. "Democracy, Structural Reform and Quality of Government in Latin America: A time-series cross-sectional analysis" Paper presented at the annual meeting of the Midwest Political Science Association, Palmer House Hotel, Chicago, IL, Apr 12, 2007 <Not Available>. 2010-01-24 <http://www.allacademic.com/meta/p197340_index.html>

APA Citation:

Cejudo, G. M. , 2007-04-12 "Democracy, Structural Reform and Quality of Government in Latin America: A time-series cross-sectional analysis" Paper presented at the annual meeting of the Midwest Political Science Association, Palmer House Hotel, Chicago, IL Online <APPLICATION/PDF>. 2010-01-24 from http://www.allacademic.com/meta/p197340_index.html

Publication Type: Conference Paper/Unpublished Manuscript
Abstract: For decades, it was widely assumed that the reasons behind the poor performance of Latin American governments were the absence of democratic elections or the problems of an overgrown state. Yet, recent experience in Latin American democracies suggest that it is plainly wrong to assume that regime change or market reforms lead automatically to improved governance, and therefore it is necessary to understand the determinants of the quality of government.
This paper is an attempt to move forward the discussion by analyzing two of the most relevant variables identified in this literature with time-series, cross-sectional data for the Latin American region, and employing data on quality of government that includes three dimensions of the quality of government (professional bureaucracy, lack of corruption and law enforcement). The empirical analysis shows that we can have a richer understanding of how democracy and structural adjustment improve the quality of government if we look at how their components affect our dependent variable. We now know that regime change or economic reform involve different mechanisms, and that each of these mechanisms behave differently, and it should not be assumed that they will follow the same dynamics.
Thus, the main argument of this paper is that, behind those broad aggregate indicators, there are specific components at work. In the case of democracy, it shows that political participation has a negative effect on the quality of government, political constraints on the executive have a significant positive effect, and free press and electoral competition have no significant impact. For structural adjustment, this study suggests that neither government size nor fiscal discipline have an effect on the quality of government once “openness to the world economy” is included in the specification. Is this latter variable what explains variation in the quality of government in the region.

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Document Type: application/pdf
Page count: 44
Word count: 10132
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DEMOCRACY STRUCTURAL REFORM AND QUALITY OF GOVERNMENT IN LATIN AMERICA: A TIME-SERIES CROSS SECTIONAL ANALYSIS Guillermo M. Cejudo guillermo.cejudo@cide.edu Public Administration Division Centro de Investigación y Docencia Económicas Carretera México-Toluca 3655 Lomas de Santa Fe 01210 Mexico City Mexico draft/do not cite/comments welcome Paper delivered at the Annual Meeting of the Midwest Political Science Association Chicago April 2007 DEMOCRACY STRUCTURAL REFORM AND QUALITY OF GOVERNMENT IN LATIN AMERICA: A TIME-SERIES CROSS SECTIONAL ANALYSIS Abstract For decades it was widely
size discipline Str. Reform 1 index n= 222 Openness 0.2458 1 0.0002 n= 222 n= 240 Gov size 0.1593 0.0537 1 0.0184 0.4109 n= 219 n= 237 n= 237 Fiscal 0.2641 0.1931 - 1 discipline 0.598 9 0.0004 0.0083 0 n= 178 n= 186 n= n= 186 184 41


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