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Political alternation as a restraint on investing in influence : evidence from the post-communist transition

Author

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  • Milanovic, Branko
  • Hoff, Karla
  • Horowitz, Shale

Abstract

The authors develop and implement a method for measuring the frequency of changes in power among distinct leaders and ideologically distinct parties that is comparable across political systems. The authors find that more frequent alternation in power is associated with the emergence of better governance in post communist countries. The results are consistent with the hypothesis that firms seek durable protection from the state, which implies that expected political alternation is relevant to the decision whether to invest in influence with the governing party or, alternatively, to demand institutions that apply predictable rules, with equality of treatment, regardless of the party in power.

Suggested Citation

  • Milanovic, Branko & Hoff, Karla & Horowitz, Shale, 2008. "Political alternation as a restraint on investing in influence : evidence from the post-communist transition," Policy Research Working Paper Series 4747, The World Bank.
    • Handle: RePEc:wbk:wbrwps:4747
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    References listed on IDEAS

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    Cited by:

    1. Thorsten Beck & Luc Laeven, 2006. "Institution building and growth in transition economies," Journal of Economic Growth, Springer, vol. 11(2), pages 157-186, June.
    2. Nauro Campos & Francesco Giovannoni, 2007. "Lobbying, corruption and political influence," Public Choice, Springer, vol. 131(1), pages 1-21, April.
    3. Nauro F. Campos & Francesco Giovannoni, 2008. "Lobbying, Corruption and Other Banes," William Davidson Institute Working Papers Series wp930, William Davidson Institute at the University of Michigan.
    4. Irvin Mikhail Soto & Willy Walter Cortéz, 2015. "La corrupción en la burocracia estatal mexicana," Revista de Economía Institucional, Universidad Externado de Colombia - Facultad de Economía, vol. 17(33), pages 161-182, July-Dece.

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    More about this item

    Keywords

    National Governance; Governance Indicators; Public Sector Corruption&Anticorruption Measures; Parliamentary Government; Emerging Markets;
    All these keywords.

    JEL classification:

    • P37 - Political Economy and Comparative Economic Systems - - Socialist Institutions and Their Transitions - - - Legal
    • P3 - Political Economy and Comparative Economic Systems - - Socialist Institutions and Their Transitions

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