Saibal, Ghosh (2010): Does Political Competition Matter for Economic Performance? Evidence from Sub-national Data. Published in: Political Studies , Vol. 58, No. 5 (December 2010): pp. 1030-1048.
Download (198kB) | Preview
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.
|Item Type:||MPRA Paper|
|Original Title:||Does Political Competition Matter for Economic Performance? Evidence from Sub-national Data|
|Keywords:||political competition; economic performance; fiscal policy; sub-national; india|
|Subjects:||H - Public Economics > H7 - State and Local Government ; Intergovernmental Relations > H72 - State and Local Budget and Expenditures
H - Public Economics > H7 - State and Local Government ; Intergovernmental Relations > H71 - State and Local Taxation, Subsidies, and Revenue
P - Economic Systems > P5 - Comparative Economic Systems > P52 - Comparative Studies of Particular Economies
|Depositing User:||Saibal Ghosh|
|Date Deposited:||10. Nov 2010 15:49|
|Last Modified:||13. Feb 2013 07:36|
Acemoglu, D., S. Johnson and J.A.Robinson (2001). The colonial origins of comparative development: An empirical investigation. American Economic Review 91 (4), 1369-1401.
Alesina, A., and R. Perotti (1995). The political economy of budget deficits. IMF Staff Papers (March), 1-31.
Anderson, G.M., and R.D. Tollison (1988). Legislative monopoly and the size of government. Southern Economic Journal 54 (3), 529-45.
Arellano, M., and S. Bond (1991). Some tests of specification for panel data: Monte Carlo evidence and application to employment equation. Review of Economic Studies 58 (2), 277-97.
Ashworth, J., B. B. Geys, B. Heyndels and F. Willie (2006). Political competition and local government performance: Evidence from Flemish municipalities (Mimeo).
Barro, R.J. (1996). Democracy and growth. Journal of Economic Growth 1 (1), 1-96.
Besley, T., and I. Preston (2007). Electoral bias and policy choice: theory and evidence. Quarterly Journal of Economics 122 (3), 1473–1510.
Besley, T., R. Pande and V. Rao (2007). Political economy of Panchayats in South India. Economic and Political Weekly (February), 661-66.
Bueno De Mesquita, E., (2000). Strategic and non-policy voting: A coalitional analysis of Israeli electoral reforms. Comparative Politics 33 (1), 63-80.
Bueno De Mesquita, B., A. Smith, R.M.Siverson and J.D. Morrow (2003). The Logic of Political Survival. Cambridge: MIT Press.
Chibber, P., and I. Nooruddin (2004). Do party systems count? The number of parties and government performance in the Indian states. Comparative Political Studies 37 (1), 152-87.
Economic and Political Weekly Research Foundation (2003). Database on Indian states. EPW: Mumbai.
Election Commission of India website. <www. eci.gov.in> Accessed on October 6, 2008.
Ferris, S. J., S-B Park and S. L. Winer (2008). Studying the role of political competition in the evolution of government size over long horizons. Public Choice 49 (2), 369-401.
Grossman, P. and E. West (1994). Federalism and the growth of government revisited. Public Choice 79 (1), 19-32.
Karnik ,A. (1990). Elections and government expenditure. Journal of Quantitative Economics 6 (2), 203-12.
Keefer, P. (2004). What does political economy tell us about economic development – and vice versa? World Bank Policy Research Working Paper 3250. World Bank: Washington DC.
King, R., and R. Levine (1993). Finance and growth: Schumpeter might be right. Quarterly Journal of Economics 108 (3), 717-37.
Kochhar, K., U. Kumar, R. Rajan, A. Subramanium and I. Tokatlidis (2006). India’s pattern of development: What happened, what follows? Journal of Monetary Economics 53 (4), 981-1019.
Levine, R., N. Loayza and T. Beck (2000). Financial intermediation and growth: Causality and causes. Journal of Monetary Economics 46 (1), 31-77.
Lipford, J., and B. Yandle (1990). Exploring dominant state governments. Journal of Institutional and Theoretical Economics 146 (3), 561-75.
Marlow, M. L. (1988). Fiscal decentralization and government size. Public Choice 56 (2), 259-69.
Oates, W. (1985). Searching for Leviathan: An empirical study. American Economic Review 75 (2), 748-57.
Olle, A. S. (2005). The effects of party competition on budget outcomes: Empirical evidence from local governments in Spain. Discussion Paper 2. University of Barcelona: Spain.
Persson, T., and G. Tabellini, G. (2000). Political economics: Explaining economic policy. Cambridge: MIT Press.
Planning Commission website. Available at <www.planningcommission. nic.in>
Reserve Bank of India (2004). Handbook of Statistics on State Government Finances. RBI: Mumbai.
Reserve Bank of India (2007). Handbook of Statistics on Indian Economy. RBI: Mumbai.
Rogers, D.L., and J. H. Rogers (2000). Political competition and state government size: Do tighter elections produce looser budgets? Public Choice 105 (1), 1-21.
Sen, K., and R. Vaidya (1994). Political budget cycles in India. Economic and Political Weekly (July). 378-384.
Svensson, J. (1998). Controlling spending: Electoral competition, polarization, and primary elections (Mimeo).