Do Elections Slow Down Economic Globalization Process In India? It’S Politics Stupid !
I investigate whether timing of the elections impact economic globalization process or not in India. In other words, do elections slowdown economic globalization process? The theoretical underpinning is that, policies of economic globalization lead to economic and social hardships in short run but benefit the economy in the long run. The motto behind slowing down the economic globalization process before elections is that it leads to polarization of voters and thus negatively affects the incumbent government. I make use of Axel Dreher’s economic globalization index and construct ‘instrumental electoral cycle’ to capture the scheduled and midterm election cycle. Using time series data for India for the period 1970 – 2006, I find that scheduled elections are associated with slow down in economic globalization, whereas midterm elections are not. Replacing Dreher’s economic globalization index with our modified globalization index does not alter the results. I also find that slow down in economic globalization process is responsive to the propinquity to a schedule election year. Meaning, as incumbent government nears the schedule elections, economic globalization process keeps slowing down, while this is exactly opposite during the early years of incumbent government in office. These results suggest that elections generate “electoral globalization cycle” in developing democratic country like India.
|Date of creation:||23 Aug 2008|
|Date of revision:|
|Contact details of provider:|| Postal: |
Web page: http://mpra.ub.uni-muenchen.de
More information through EDIRC
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Henrik Hansen & John Rand, 2004.
"On the Causal Links between FDI and Growth in Developing Countries,"
04-30, University of Copenhagen. Department of Economics.
- Henrik Hansen & John Rand, 2006. "On the Causal Links Between FDI and Growth in Developing Countries," The World Economy, Wiley Blackwell, vol. 29(1), pages 21-41, 01.
- Hansen, Henrik & Rand, John, 2005. "On the Causal Links between FDI and Growth in Developing Countries," Working Paper Series RP2005/31, World Institute for Development Economic Research (UNU-WIDER).
- Rogoff, Kenneth, 1990.
"Equilibrium Political Budget Cycles,"
American Economic Review,
American Economic Association, vol. 80(1), pages 21-36, March.
- Rao, B. Bhaskara & Tamazian, Artur & Vadlamannati, Krishna Chaitanya, 2008.
"Growth Effects of a Comprehensive Measure of Globalization with Country Specific Time Series Data,"
7917, University Library of Munich, Germany.
- B. Bhaskara Rao & Artur Tamazian & Krishna Chaitanya Vadlamannati, 2011. "Growth effects of a comprehensive measure of globalization with country-specific time series data," Applied Economics, Taylor & Francis Journals, vol. 43(5), pages 551-568.
- Milanovic, Branko, 1995. "Poverty, inequality, and social policy in transition economies," Policy Research Working Paper Series 1530, The World Bank.
- Alesina, Alberto F & Roubini, Nouriel, 1990.
"Political Cycles in OECD Economies,"
CEPR Discussion Papers
470, C.E.P.R. Discussion Papers.
- Areendam Chanda, 2002.
"The Influence of Capital Controls on Long Run Growth: Where and How Much?,"
- Chanda, Areendam, 2005. "The influence of capital controls on long run growth: Where and how much?," Journal of Development Economics, Elsevier, vol. 77(2), pages 441-466, August.
- Michael D. Bordo & Christopher M. Meissner, 2007. "Foreign Capital and Economic Growth in the First Era of Globalization," NBER Working Papers 13577, National Bureau of Economic Research, Inc.
- L. Wade, 1988. "Review," Public Choice, Springer, vol. 58(1), pages 99-100, July.
- Kausik Chaudhuri & Sugato Dasgupta, 2005. "The political determinants of central governments' economic policies in India: an empirical investigation," Journal of International Development, John Wiley & Sons, Ltd., vol. 17(7), pages 957-978.
- Kenneth Rogoff & Anne Sibert, 1986.
"Elections and Macroeconomic Policy Cycles,"
NBER Working Papers
1838, National Bureau of Economic Research, Inc.
- Axel Dreher, 2005.
"Does Globalization Affect Growth? Evidence from a new Index of Globalization,"
TWI Research Paper Series
6, Thurgauer Wirtschaftsinstitut, Universität Konstanz.
- Axel Dreher, 2006. "Does globalization affect growth? Evidence from a new index of globalization," Applied Economics, Taylor & Francis Journals, vol. 38(10), pages 1091-1110.
- de Melo, Martha & Denizer, Cevdet & Gelb, Alan, 1996. "From plan to market : patterns of transition," Policy Research Working Paper Series 1564, The World Bank.
- Zhang, Wei, 2001. " Rethinking Regional Disparity in China," Economic Change and Restructuring, Springer, vol. 34(1-2), pages 113-38.
- Alesina, Alberto F & Grilli, Vittorio & Milesi-Ferretti, Gian Maria, 1993.
"The Political Economy of Capital Controls,"
CEPR Discussion Papers
793, C.E.P.R. Discussion Papers.
- Schuknecht, Ludger, 2000. " Fiscal Policy Cycles and Public Expenditure in Developing Countries," Public Choice, Springer, vol. 102(1-2), pages 115-30, January.
- Roubini, Nouriel & Alesina, Alberto, 1992. "Political Cycles in OECD Economies," Scholarly Articles 4553025, Harvard University Department of Economics.
- Gaurav Datt, 1999. "Has Poverty Declined since Economic Reforms? Statistical Data Analysis," Monash Economics Working Papers archive-31, Monash University, Department of Economics.
- Lindbeck, Assar, 1976. "Stabilization Policy in Open Economies with Endogenous Politicians," American Economic Review, American Economic Association, vol. 66(2), pages 1-19, May.
- Torben Andersen & Tryggvi Thor Herbertsson, 2005. "Quantifying globalization," Applied Economics, Taylor & Francis Journals, vol. 37(10), pages 1089-1098.
When requesting a correction, please mention this item's handle: RePEc:pra:mprapa:10139. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Ekkehart Schlicht)
If references are entirely missing, you can add them using this form.