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Does Political Competition Matter for Economic Performance? Evidence from Sub-national Data

  • Saibal, Ghosh

The study utilizes data on major Indian states for 1980-2004 to explore the impact of political competition on state-level income and fiscal variables. The findings suggest that increase in political competition leads to an increase in state per capita income and growth. Focusing on fiscal variables, the analysis indicates that tighter political competition increases economic expenditure.

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File URL: http://mpra.ub.uni-muenchen.de/26603/1/MPRA_paper_26603.pdf
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Paper provided by University Library of Munich, Germany in its series MPRA Paper with number 26603.

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Date of creation: Jan 2010
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Publication status: Published in Political Studies 5.58(2010): pp. 1030-1048
Handle: RePEc:pra:mprapa:26603
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  1. repec:fth:wobaco:1083 is not listed on IDEAS
  2. P.J. Grossman & E. West, 1991. "Federalism and the Growth of Government Revisited," Economics Discussion / Working Papers 91-05, The University of Western Australia, Department of Economics.
  3. King, Robert G & Levine, Ross, 1993. "Finance and Growth: Schumpeter Might Be Right," The Quarterly Journal of Economics, MIT Press, vol. 108(3), pages 717-37, August.
  4. Sen, K. & Vaidya, R.R., 1994. "Political Budget Cycles in India," Papers 104, Indira Gandhi Institute of Development Research-.
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  6. Levine, Ross & Loayza, Norman & Beck, Thorsten, 2000. "Financial intermediation and growth: Causality and causes," Journal of Monetary Economics, Elsevier, vol. 46(1), pages 31-77, August.
  7. Ferris, J. Stephen & Park, Soo-Bin & Winer, Stanley L., 2008. "Studying the role of political competition in the evolution of government size over long horizons," POLIS Working Papers 111, Institute of Public Policy and Public Choice - POLIS.
  8. Timothy Besley & Ian Preston, 2007. "Electoral Bias and Policy Choice: Theory and Evidence," The Quarterly Journal of Economics, MIT Press, vol. 122(4), pages 1473-1510, November.
  9. Arellano, Manuel & Bond, Stephen, 1991. "Some Tests of Specification for Panel Data: Monte Carlo Evidence and an Application to Employment Equations," Review of Economic Studies, Wiley Blackwell, vol. 58(2), pages 277-97, April.
  10. Rogers, Diane Lim & Rogers, John H, 2000. " Political Competition and State Government Size: Do Tighter Elections Produce Looser Budgets?," Public Choice, Springer, vol. 105(1-2), pages 1-21, October.
  11. Marlow, Michael L, 1991. " Privatization and Government Size," Public Choice, Springer, vol. 68(1-3), pages 273-76, January.
  12. Albert Solé-Ollé, 2006. "The effects of party competition on budget outcomes: Empirical evidence from local governments in Spain," Public Choice, Springer, vol. 126(1), pages 145-176, January.
  13. Daron Acemoglu & Simon Johnson & James A. Robinson, 2001. "The Colonial Origins of Comparative Development: An Empirical Investigation," American Economic Review, American Economic Association, vol. 91(5), pages 1369-1401, December.
  14. Barro, Robert J, 1996. " Democracy and Growth," Journal of Economic Growth, Springer, vol. 1(1), pages 1-27, March.
  15. Arvind Subramanian & Raghuram Rajan & Ioannis Tokatlidis & Kalpana Kochhar & Utsav Kumar, 2006. "India's Pattern of Development; What Happened, What Follows?," IMF Working Papers 06/22, International Monetary Fund.
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