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Multiparty Competition, Founding Elections and Political Business Cycles in Africa

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  • Steven A. Block
  • Karen E. Ferree
  • Smita Singh

Abstract

Political business cycle (PBC) theory and empirics typically assume that elections are competitive. Yet, as empirical work on PBCs turns increasingly to developing countries for evidence, this assumption becomes untenable. We propose and test two empirical hypotheses regarding PBCs: first, we should only see cycles when elections involve multiparty competition; secondly, we should see larger cycles in 'founding' elections. Using a new indicator of multiparty competition and macroeconomic data from Africa, we find strong support for our first hypothesis and moderate support for the second. These findings have implications for democratic transitions and the compatibility of economic and political reform in nascent democracies. Copyright 2003, Oxford University Press.

Suggested Citation

  • Steven A. Block & Karen E. Ferree & Smita Singh, 2003. "Multiparty Competition, Founding Elections and Political Business Cycles in Africa," Journal of African Economies, Centre for the Study of African Economies, vol. 12(3), pages 444-468, September.
    • Handle: RePEc:oup:jafrec:v:12:y:2003:i:3:p:444-468
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    JEL classification:

    • D72 - Microeconomics - - Analysis of Collective Decision-Making - - - Political Processes: Rent-seeking, Lobbying, Elections, Legislatures, and Voting Behavior
    • N17 - Economic History - - Macroeconomics and Monetary Economics; Industrial Structure; Growth; Fluctuations - - - Africa; Oceania
    • O11 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Macroeconomic Analyses of Economic Development
    • O23 - Economic Development, Innovation, Technological Change, and Growth - - Development Planning and Policy - - - Fiscal and Monetary Policy in Development

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