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Growth and Election Outcomes in a Developing Country

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Author Info

  • Gupta, Poonam

    ()
    (National Institute of Public Finance and Policy)

  • Panagariya, Arvind

    ()
    (Columbia University)

Abstract

With the exception Brander and Drazen (2008), who use a comprehensive cross-country database consisting of both developed and developing countries, the hypothesis that rapid growth helps incumbents win elections has been tested exclusively for the developed countries (e.g., Ray Fair 1978). But since sustained rapid growth offers the prospect of pulling vast numbers of the voters out of poverty within a generation, such an effect is far more likely to be present in the developing rather than developed countries. In this paper, we offer the first test of the hypothesis on a large developing and poor country, India, which has seen its economy grow 8 to 9 percent recently. We first generalize the Fair model to allow for multiple candidates instead for just two and then test it using crossstate data. We find quantitatively large and statistically robust effect of growth on the prospects of the candidates of the state incumbent parties to win elections. Specifically, we use the data on 422 candidates in the 2009 parliamentary elections and show that the candidates of incumbent parties in high-growth states have much better prospects of victory than those in low-growth states.

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Bibliographic Info

Paper provided by National Institute of Public Finance and Policy in its series Working Papers with number 11/92.

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Length: 31
Date of creation: Oct 2011
Date of revision:
Handle: RePEc:npf:wpaper:11/92

Note: Working Paper 92, 2011
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Web page: http://www.nipfp.org.in

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  1. Alberto Alesina & Howard Rosenthal, 1989. "Moderating Elections," NBER Working Papers 3072, National Bureau of Economic Research, Inc.
  2. Adi Brender & Allan Drazen, 2008. "How Do Budget Deficits and Economic Growth Affect Reelection Prospects? Evidence from a Large Panel of Countries," American Economic Review, American Economic Association, vol. 98(5), pages 2203-20, December.
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Cited by:
  1. Dutta, Bhaskar & Gupta, Poonam, 2012. "How Do Indian Voters Respond to Candidates with Criminal Charges : Evidence from the 2009 Lok Sabha Elections," MPRA Paper 38417, University Library of Munich, Germany.

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