The Diffusion of Regulatory Capitalism in Latin America Sectoral and National Channels in the Making of New Order
Annals of the American Academy of Political and Social Science, Vol. 598, pp. 102-124, 2005
Posted: 19 Jan 2007
This paper analyzes the sweeping restructuring of the state in Latin America and the consequent institutionalization of a new regulatory order. The analysis is grounded in an original database that covers the creation of regulatory agencies and their reform in 19 countries and 12 sectors over a period of 1979-2002. Our data capture both the national and the sectoral patterns of the rise of the new order and we distinguish between (a) national patterns of diffusion, where the number of prior regulatory authorities within a country determines the probability of the establishment of new authorities in that country and, (b) sectoral patterns of diffusion, where the number of prior regulatory authority in the same sector in other country determines the probability of the establishment of new regulatory authority within that sector. The results coincide with a growing body of literature that emphasizes the role of contagious diffusion and shed some new light on the sectoral and national channels of diffusion.
Keywords: Regulation, Regulatory Capitalism, Latin America, Policy Diffusion, Liberalization, Privatization, Regulatory Agencies
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