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Did globalization restrict partisan politics? An empirical evaluation of social expenditures in a panel of OECD countries

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  • Niklas Potrafke

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Abstract

This paper evaluates empirically how, in the course of globalization, partisan politics affected social expenditures in a panel of OECD countries. I introduce an updated indicator of government ideology and investigate its interaction with the KOF index of globalization. Two basic results emerge: First, at times when globalization proceeded at an average pace, partisan politics had no effect on social expenditures, but leftist governments increased social expenditures when globalization was proceeding rapidly. Second, policies differed in the 1980s and 1990s: Leftist governments pursued expansionary policies in the 1980s. Yet partisan politics disappeared in the 1990s, but not because of globalization.

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File URL: http://hdl.handle.net/10.1007/s11127-009-9414-2
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Bibliographic Info

Article provided by Springer in its journal Public Choice.

Volume (Year): 140 (2009)
Issue (Month): 1 (July)
Pages: 105-124

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Handle: RePEc:kap:pubcho:v:140:y:2009:i:1:p:105-124

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Web page: http://www.springerlink.com/link.asp?id=100332

Related research

Keywords: Partisan politics; Globalization; Social expenditures; Welfare state; Panel data; H53; H87; I38; D72; F02; C23;

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  1. Axel Dreher, 2005. "Does Globalization Affect Growth? Evidence from a new Index of Globalization," TWI Research Paper Series 6, Thurgauer Wirtschaftsinstitut, Universität Konstanz.
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  10. Ansgar Belke & Niklas Potrafke, 2011. "Does Government Ideology Matter in Monetary Policy?: A Panel Data Analysis for OECD Countries," Discussion Papers of DIW Berlin 1180, DIW Berlin, German Institute for Economic Research.
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