Pakistan, politics and political business cycles
AbstractThis paper studies whether in Pakistan the dynamic behavior of unemployment, inflation, budget deficit and real GDP growth is systematically affected by the timing of elections. We cover the period from 1973-2009. Our results can be summarized as follows: 1. Unemployment tends to be lower in pre-election periods and tends to increase immediately after elections, perhaps as a result of politically motivated employment schemes. 2. In ation tend to be lower in preelection periods, perhaps as a result of pre-electoral price regulation. 3. We find election year increases in the governmental budget deficit, financed by heavy government borrowings from the central bank and banking sector. 4. Real GDP growth and real governmental investment growth declines during pre and post election terms. --
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Bibliographic InfoPaper provided by Technische Universität Braunschweig, Economics Department in its series Economics Department Working Paper Series with number 7.
Date of creation: 2009
Date of revision:
Opportunistic Political Business Cycle; Fiscal Policy; Macroeconomics; Elections; Asia; Pakistan;
Find related papers by JEL classification:
- D72 - Microeconomics - - Analysis of Collective Decision-Making - - - Political Processes: Rent-seeking, Lobbying, Elections, Legislatures, and Voting Behavior
- D78 - Microeconomics - - Analysis of Collective Decision-Making - - - Positive Analysis of Policy-Making and Implementation
- H50 - Public Economics - - National Government Expenditures and Related Policies - - - General
- H61 - Public Economics - - National Budget, Deficit, and Debt - - - Budget; Budget Systems
- E51 - Macroeconomics and Monetary Economics - - Monetary Policy, Central Banking, and the Supply of Money and Credit - - - Money Supply; Credit; Money Multipliers
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