of 3 equations where economic growth, economic reform and FDI are jointly determined. We find that new reforms affect … economic growth negatively but attract FDI, whereas the level of past reform leads to higher growth. This means that the … immediate adjustment cost of new reforms is counterbalanced by an immediate increase in FDI inflows and higher growth in the …

equations where economic growth, economic reform and FDI are jointly determined. New reforms affect economic growth negatively …, whereas the level of past reform leads to higher growth and attracts FDI.This means that the immediate adjustment cost of new … reforms is counterbalanced by a future increase in FDI inflows and higher future growth through a higher level of past reform …

of 3 equations where economic growth, economic reform and FDI are jointly determined. We find that new reforms affect … economic growth negatively but attract FDI, whereas the level of past reform leads to higher growth. This means that the … immediate adjustment cost of new reforms is counterbalanced by an immediate increase in FDI inflows and higher growth in the …

We analyse how the choice of reform speed, foreign direct investment (FDI) and economic growth affect one another. New … reforms affect economic growth negatively, whereas the level of past reform leads to higher growth and attracts FDI. We … reversal probabilities suffice to tilt the balance in favour of gradualism. The case for gradualism gains strength if …

equations where economic growth, economic reform and FDI are jointly determined. New reforms affect economic growth negatively …, whereas the level of past reform leads to higher growth and attracts FDI. This means that the immediate adjustment cost of new … reforms is counterbalanced by a future increase in FDI inflows and higher future growth through a higher level of past reform …

that higher expected probabilities of reversal make policymakers more likely to opt for gradualism. Even relatively small … probabilities are su.cient to tilt the balance in favour of gradualism. This is reinforced by shortsightedness of policymakers that …

taxing inward FDI. Our argument in favour of gradual liberalization is based on two stylized features of spillovers: first …

(FDI), the latter in turnbeing important for the former. It is also found that the correlation between institutionsand FDI …