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Does Political Competition Matter for Economic Performance? Evidence from Sub-national Data

  • Saibal Ghosh

The study utilizes data on major Indian states for 1980-2004 to explore the impact of political competition on state-level income and fiscal variables. The findings suggest that increase in political competition leads to an increase in state per capita income and growth. Focusing on fiscal variables, the analysis indicates that tighter political competition increases economic expenditure.

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File URL: http://www.blackwell-synergy.com/doi/abs/10.1111/j.1467-9248.2010.00823.x
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Article provided by Political Studies Association in its journal Political Studies.

Volume (Year): 58 (2010)
Issue (Month): (December)
Pages: 1030-1048

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Handle: RePEc:bla:polstu:v:58:y:2010:i::p:1030-1048
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  1. Barro, Robert J, 1996. " Democracy and Growth," Journal of Economic Growth, Springer, vol. 1(1), pages 1-27, March.
  2. Daron Acemoglu & Simon Johnson & James A. Robinson, 2001. "The Colonial Origins of Comparative Development: An Empirical Investigation," American Economic Review, American Economic Association, vol. 91(5), pages 1369-1401, December.
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  8. Kochhar, Kalpana & Kumar, Utsav & Rajan, Raghuram & Subramanian, Arvind & Tokatlidis, Ioannis, 2006. "India's pattern of development: What happened, what follows?," Journal of Monetary Economics, Elsevier, vol. 53(5), pages 981-1019, July.
  9. Arellano, Manuel & Bond, Stephen, 1991. "Some Tests of Specification for Panel Data: Monte Carlo Evidence and an Application to Employment Equations," Review of Economic Studies, Wiley Blackwell, vol. 58(2), pages 277-97, April.
  10. Albert Solé Ollé, 2005. "The effects of party competition on budget outcomes: Empirical evidence from local governments in Spain," Working Papers 2005/2, Institut d'Economia de Barcelona (IEB).
  11. Sen, K. & Vaidya, R.R., 1994. "Political Budget Cycles in India," Papers 104, Indira Gandhi Institute of Development Research-.
  12. Rogers, Diane Lim & Rogers, John H, 2000. " Political Competition and State Government Size: Do Tighter Elections Produce Looser Budgets?," Public Choice, Springer, vol. 105(1-2), pages 1-21, October.
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  15. Marlow, Michael L, 1991. " Privatization and Government Size," Public Choice, Springer, vol. 68(1-3), pages 273-76, January.
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