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Words speak louder than actions: The impact of politics on economic performance

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  • Osterloh, Steffen

Abstract

In this paper, a new approach to disclose the impact of politics on economic growth is presented: data derived from content analysis of party manifestos is used as measures of party preferences. In a panel of 23 OECD countries, a positive impact of party support for various market-liberal policies on economic performance can be detected. In particular, I show that parties which were more concerned with market interventions and – to a lesser extent – welfare state policies impacted on growth negatively; those which proposed incentives for business as well as technology and infrastructure had a positive impact. Moreover, the robustness of the results is demonstrated in a model averaging framework.

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Bibliographic Info

Article provided by Elsevier in its journal Journal of Comparative Economics.

Volume (Year): 40 (2012)
Issue (Month): 3 ()
Pages: 318-336

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Handle: RePEc:eee:jcecon:v:40:y:2012:i:3:p:318-336

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Web page: http://www.elsevier.com/locate/inca/622864

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Keywords: Economic growth; Political economy; Ideology; Panel data; Model averaging;

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  1. Partiprogram och ekonomisk tillväxt
    by Niclas Berggren in Nonicoclolasos on 2010-12-28 03:57:18
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Cited by:
  1. Brech, Viktor & Potrafke, Niklas, 2013. "Donor ideology and types of foreign aid," Munich Reprints in Economics 20229, University of Munich, Department of Economics.
  2. François Facchini & Mickaël Melki, 2013. "Political Ideology and Economic Growth: Evidence from the French Democracy," Documents de travail du Centre d'Economie de la Sorbonne 13077, Université Panthéon-Sorbonne (Paris 1), Centre d'Economie de la Sorbonne.

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