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Politics and investment: examining the territorial allocation of public investment in Greece

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  • Psycharis, Yannis
  • Rodríguez-Pose, Andrés
  • Tselios, Vassilis

Abstract

This paper discusses how electoral politics shapes the regional allocation of public investment expenditures per capita in Greece. Using regional public investment data for 10 political periods (1975-2009), combined with electoral data by constituency, a model is proposed which captures the influence of politics on the regional distribution of public investment expenditures. The results of the analysis point to a strong relationship between electoral results and regional public investment spending. Greek governing parties have tended to reward those constituencies returning them to office. Moreover, an increase in both the absolute and relative electoral returns of the governing party in a region has traditionally been followed by greater public investment per capita in that region. Regions where the governing party (whether Liberal or Socialist) has held a monopoly of seats have been the greatest beneficiaries of this type of pork-barrel politics.

Suggested Citation

  • Psycharis, Yannis & Rodríguez-Pose, Andrés & Tselios, Vassilis, 2015. "Politics and investment: examining the territorial allocation of public investment in Greece," CEPR Discussion Papers 10422, C.E.P.R. Discussion Papers.
  • Handle: RePEc:cpr:ceprdp:10422
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    References listed on IDEAS

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    1. repec:gam:jsusta:v:9:y:2017:i:9:p:1600-:d:111361 is not listed on IDEAS
    2. Benos, Nikos & Karagiannis, Stelios, 2016. "Do education quality and spillovers matter? Evidence on human capital and productivity in Greece," Economic Modelling, Elsevier, vol. 54(C), pages 563-573.
    3. Tyralis, Hristos & Mamassis, Nikos & Photis, Yorgos N., 2017. "Spatial analysis of the electrical energy demand in Greece," Energy Policy, Elsevier, vol. 102(C), pages 340-352.
    4. Polat, Sezgin, 2016. "Some Economic Consequences of Higher Education Expansion in Turkey," MPRA Paper 72602, University Library of Munich, Germany.

    More about this item

    Keywords

    elections; Greece; political geography; pork-barrel politics; public investment;

    JEL classification:

    • H50 - Public Economics - - National Government Expenditures and Related Policies - - - General
    • H77 - Public Economics - - State and Local Government; Intergovernmental Relations - - - Intergovernmental Relations; Federalism
    • R12 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Size and Spatial Distributions of Regional Economic Activity; Interregional Trade (economic geography)
    • R58 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Regional Government Analysis - - - Regional Development Planning and Policy
    • Z18 - Other Special Topics - - Cultural Economics - - - Public Policy

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