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Did globalization restrict partisan politics? An empirical evaluation of social expenditures in a panel of OECD countries

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  • Potrafke, Niklas

Abstract

This paper evaluates empirically how, in the course of globalization, partisan politics affected social expenditures in a panel of OECD countries. I introduce an updated indicator of government ideology and investigate its interaction with the KOF index of globalization. Two basic results emerge: First, at times when globalization proceeded at an average pace, partisan politics had no effect on social expenditures, but leftist governments increased social expenditures when globalization was proceeding rapidly. Second, policies differed in the 1980s and 1990s: Leftist governments pursued expansionary policies in the 1980s. Yet partisan politics disappeared in the 1990s, but not because of globalization.

Suggested Citation

  • Potrafke, Niklas, 2009. "Did globalization restrict partisan politics? An empirical evaluation of social expenditures in a panel of OECD countries," Munich Reprints in Economics 19286, University of Munich, Department of Economics.
    • Handle: RePEc:lmu:muenar:19286
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    JEL classification:

    • H53 - Public Economics - - National Government Expenditures and Related Policies - - - Government Expenditures and Welfare Programs
    • H87 - Public Economics - - Miscellaneous Issues - - - International Fiscal Issues; International Public Goods
    • I38 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - Government Programs; Provision and Effects of Welfare Programs
    • D72 - Microeconomics - - Analysis of Collective Decision-Making - - - Political Processes: Rent-seeking, Lobbying, Elections, Legislatures, and Voting Behavior
    • F02 - International Economics - - General - - - International Economic Order and Integration

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