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Shades of red and blue: Political ideology and sustainable development

Author

Listed:
  • Toke S. Aidt

    (Faculty of Economics, University of Cambridge, U.K.)

  • Vítor Castro

    (Faculty of Economics, University of Coimbra and Economic Policies Research Unit (NIPE))

  • Rodrigo Martins

    (Faculty of Economics, University of Coimbra and Group for Monetary and Fiscal Studies (GEMF))

Abstract

We study the effect of political ideology on sustainable development, measured as investment in genuine wealth, in a dynamic panel of 79 countries between 1981 and 2013. We find that a switch from a left-wing or centrist government to a right-wing government has a robust positive and statistically significant effect on investment in genuine wealth. We find no evidence of opportunistic cycles in these investments.

Suggested Citation

  • Toke S. Aidt & Vítor Castro & Rodrigo Martins, 2016. "Shades of red and blue: Political ideology and sustainable development," NIPE Working Papers 8/2016, NIPE - Universidade do Minho.
    • Handle: RePEc:nip:nipewp:8/2016
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    References listed on IDEAS

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    Cited by:

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    2. Potrafke, Niklas, 2017. "Partisan politics: The empirical evidence from OECD panel studies," Journal of Comparative Economics, Elsevier, vol. 45(4), pages 712-750.

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    More about this item

    Keywords

    Sustainable development; Political ideology; Genuine investment.;
    All these keywords.

    JEL classification:

    • C23 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Models with Panel Data; Spatio-temporal Models
    • D72 - Microeconomics - - Analysis of Collective Decision-Making - - - Political Processes: Rent-seeking, Lobbying, Elections, Legislatures, and Voting Behavior
    • I31 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - General Welfare, Well-Being
    • O15 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Economic Development: Human Resources; Human Development; Income Distribution; Migration

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