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Political ideology and economic freedom across Canadian provinces

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  • Christian Bjørnskov
  • Niklas Potrafke

Abstract

This paper examines how political ideology influenced economic freedom in the Canadian provinces. We analyze the dataset of economic freedom indicators compiled by the Fraser Institute in 10 Canadian provinces over the 1981-2005 period and introduce two different indices of political ideology: government and parliament ideology. The results suggest that government ideology influenced labor market reforms: market-oriented governments promoted liberalization of the labor market. Parliamentary ideology did not influence economic liberalization at all. This finding (1) identifies differences between leftist and rightwing governments concerning the role of government in the economy and (2) indicates that ideological polarization concerns governments but less parliamentary fractions in the Canadian provinces.

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Paper provided by ULB -- Universite Libre de Bruxelles in its series Working Papers CEB with number 09-054.RS.

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Length: 36 p.
Date of creation: 2009
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Handle: RePEc:sol:wpaper:09-054

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Keywords: economic freedom; taxation; regulations; ideology; panel data;

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Cited by:
  1. FILIPPO BELLOC and ANTONIO NICITA, 2010. "Partisan Liberalizations. A New Puzzle from OECD Network Industries?," RSCAS Working Papers 2010/28, European University Institute.
  2. Niklas Potrafke, 2010. "Ideology and cultural policy," TWI Research Paper Series 49, Thurgauer Wirtschaftsinstitut, Universität Konstanz.
  3. Niklas Potrafke, 2011. "Economic Freedom and Government Ideology Across the German States," Working Paper Series of the Department of Economics, University of Konstanz 2011-41, Department of Economics, University of Konstanz.
  4. Filippo BELLOC & Antonio NICITA, 2011. "Liberalization-privatization paths: policies and politics," Departmental Working Papers 2011-32, Department of Economics, Management and Quantitative Methods at Università degli Studi di Milano.
  5. Niklas Potrafke, 2011. "Does government ideology influence budget composition? Empirical evidence from OECD countries," Economics of Governance, Springer, vol. 12(2), pages 101-134, June.
  6. Filippo Belloc & Antonio Nicita, 2011. "The political determinants of liberalization: do ideological cleavages still matter?," International Review of Economics, Springer, vol. 58(2), pages 121-145, June.
  7. Potrafke, Niklas, 2009. "Political cycles and economic performance in OECD countries: empirical evidence from 1951-2006," MPRA Paper 23751, University Library of Munich, Germany.
  8. François Facchini & Mickaël Melki, 2012. "Political Ideology and Economic Growth in a Democracy : The French Experience, 1871 - 2009," Université Paris1 Panthéon-Sorbonne (Post-Print and Working Papers) halshs-00662838, HAL.

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