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Shades of red and blue: government ideology and sustainable development

Author

Listed:
  • Toke S. Aidt

    (University of Cambridge)

  • Vitor Castro

    (Loughborough University
    University of Minho)

  • Rodrigo Martins

    (University of Coimbra
    Centre for Business and Economic Research (CeBER))

Abstract

We study the effect of government ideology on sustainable development, measured as investment in genuine wealth, in a dynamic panel of 79 countries between 1981 and 2013. We find robust and statistically significant evidence that genuine investment grows faster under right-wing governments than under left-wing or center governments. In contrast, we find no indication of opportunistic cycles.

Suggested Citation

  • Toke S. Aidt & Vitor Castro & Rodrigo Martins, 2018. "Shades of red and blue: government ideology and sustainable development," Public Choice, Springer, vol. 175(3), pages 303-323, June.
    • Handle: RePEc:kap:pubcho:v:175:y:2018:i:3:d:10.1007_s11127-018-0536-2
    DOI: 10.1007/s11127-018-0536-2
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    Cited by:

    1. Thanh C. Nguyen & Vítor Castro & Justine Wood, 2022. "Political environment and financial crises," International Journal of Finance & Economics, John Wiley & Sons, Ltd., vol. 27(1), pages 417-438, January.
    2. Castro, Vítor & Martins, Rodrigo, 2021. "Government ideology and economic freedom," Journal of Comparative Economics, Elsevier, vol. 49(1), pages 73-91.
    3. Ali, Mohammad Afshar & Alam, Khorshed & Taylor, Brad & Rafiq, Shuddhasattwa, 2020. "Does ICT maturity catalyse economic development? Evidence from a panel data estimation approach in OECD countries," Economic Analysis and Policy, Elsevier, vol. 68(C), pages 163-174.
    4. Bjørnskov, Christian, 2020. "Economic Freedom and the CO2 Kuznets Curve," Working Paper Series 1331, Research Institute of Industrial Economics.
    5. Agnello, Luca & Castro, Vítor & Sousa, Ricardo M., 2023. "A quest between fiscal and market discipline," Economic Modelling, Elsevier, vol. 119(C).
    6. Christoph Doerffel & Peter Draper & Andreas Freytag & Sebastian Schuhmann, 2021. "Drivers of Inclusive Development: An Empirical Investigation," Jena Economics Research Papers 2021-015, Friedrich-Schiller-University Jena.
    7. Ravenda, Diego & Giuranno, Michele G. & Valencia-Silva, Maika M. & Argiles-Bosch, Josep M. & García-Blandón, Josep, 2020. "The effects of mafia infiltration on public procurement performance," European Journal of Political Economy, Elsevier, vol. 64(C).
    8. Yang, Hao-Chang & Feng, Gen-Fu & Zhao, Xin Xin & Chang, Chun-Ping, 2022. "The impacts of energy insecurity on green innovation: A multi-country study," Economic Analysis and Policy, Elsevier, vol. 74(C), pages 139-154.
    9. Vítor Castro & Rodrigo Martins, 2021. "Economic liberalization, political regimes and ideology," Kyklos, Wiley Blackwell, vol. 74(4), pages 463-487, November.
    10. Toke Aidt & Felix Grey & Alexandru Savu, 2021. "The Meaningful Votes: Voting on Brexit in the British House of Commons," Public Choice, Springer, vol. 186(3), pages 587-617, March.

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    More about this item

    Keywords

    Sustainable development; Government ideology; Political cycles; Genuine investment;
    All these keywords.

    JEL classification:

    • C23 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Models with Panel Data; Spatio-temporal Models
    • D72 - Microeconomics - - Analysis of Collective Decision-Making - - - Political Processes: Rent-seeking, Lobbying, Elections, Legislatures, and Voting Behavior
    • I31 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - General Welfare, Well-Being
    • O15 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Economic Development: Human Resources; Human Development; Income Distribution; Migration

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