Does Political Ideology Affect Economic Growth?

Bjørnskov, Christian

doi:10.1007/s11127-005-0263-3

Cited by 89 publications

(77 citation statements)

References 35 publications

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“…First, it is a well-established strategy to add the variable of interest, in our case the political variables described above, to a panel growth regression which comprises a number of further control variables. This is the typical approach of the political economic analyses cited above, such as concerning the growth effect of economic freedom indices (e.g, Berggren and Jordahl (2005)) or political ideology (Bjørnskov (2005)). Analogous to these studies, we will test our political variables in standard growth regressions.…”

Section: Empirical Model and Resultsmentioning

confidence: 99%

Words speak louder than actions: The impact of politics on economic performance

Osterloh

2012

Journal of Comparative Economics

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Die Dis cus si on Pape rs die nen einer mög lichst schnel len Ver brei tung von neue ren For schungs arbei ten des ZEW. Die Bei trä ge lie gen in allei ni ger Ver ant wor tung der Auto ren und stel len nicht not wen di ger wei se die Mei nung des ZEW dar.Dis cus si on Papers are inten ded to make results of ZEW research prompt ly avai la ble to other eco no mists in order to encou ra ge dis cus si on and sug gesti ons for revi si ons. The aut hors are sole ly respon si ble for the con tents which do not neces sa ri ly repre sent the opi ni on of the ZEW.Download this ZEW Discussion Paper from our ftp server:ftp://ftp.zew.de/pub/zew-docs/dp/dp10092.pdf Non-technical summaryIn this paper, we present a new approach to disclose the impact of policy preferences of parties on economic growth. We derive policy preferences of parties, such as political ideology and preferences restricted to single policy dimensions, from the content analysis of party manifestos. This data is obtained from the Comparative Manifesto Project (CMP), an international large scale project in political science that has collected the wording of thousands of election manifestos. These are coded according to the frequency of sentences devoted to 56 different policy issues, which comprise economic and non-economic issues and are regarded as proxies for the party preferences in the related political science literature. Based on this data, it is possible to calculate indices for the general left-right position as well as concerning specific policy areas that represent the political preferences of the parties or legislatures.In the empirical section, we analyse per capita GDP growth in a panel of 23 OECD countries for the period 1971-2004. We estimate several models containing a set of typical control variables; fixed effects control for time-invariant country-specific influences. First, we follow an approach which is typical for the empirical political economics literature and employ dummy variables for the differentiation of left-wing and right-wing governments.However, we are not able to detect a significant impact of partisanship on growth rates.This implies that partisanship defined according to the broad distinction between leftwing and right-wing governments cannot be proven to affect economic growth.Then we proceed with analyses based on 7 indices that account for the political preferences concerning different policy areas. These indicators are first tested individually in our empirical model, and then jointly in a model averaging procedure, the weighted averaged least squares (WALS) method. A strong and robust negative impact on economic growth can be detected for parties that support market interventions, whereas a positive impact can be found for parties that aim at setting incentives for business as well as those which promote technology and infrastructure. Welfare state policies are also found to have a significant negative effect in our classical estimations, but show a much weaker impact in our WALS analysis. These results are robust to...

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Section: Empirical Model and Resultsmentioning

confidence: 99%

Words speak louder than actions: The impact of politics on economic performance

Osterloh

2012

Journal of Comparative Economics

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“…Table 1 reports the regression results when we use the weighted social justice indicator. We include the explanatory variables separately to show that inferences regarding the wing societies (Bjørnskov 2005). Government ideology has not explained life satisfaction .…”

Section: The Empirical Modelmentioning

confidence: 99%

Globalization and social justice in OECD countries

Kauder

Potrafke

2015

Rev World Econ

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Standard-Nutzungsbedingungen:Die Dokumente auf EconStor dürfen zu eigenen wissenschaftlichen Zwecken und zum Privatgebrauch gespeichert und kopiert werden.Sie dürfen die Dokumente nicht für öffentliche oder kommerzielle Zwecke vervielfältigen, öffentlich ausstellen, öffentlich zugänglich machen, vertreiben oder anderweitig nutzen.Sofern die Verfasser die Dokumente unter Open-Content-Lizenzen (insbesondere CC-Lizenzen) zur Verfügung gestellt haben sollten, gelten abweichend von diesen Nutzungsbedingungen die in der dort genannten Lizenz gewährten Nutzungsrechte. Terms of use: Documents in EconStor may Globalization and Social Justice in OECD CountriesAbstract Social justice is a topic of importance to social scientists and also political decision makers. We examine the relationship between globalization and social justice as measured by a new indicator for 31 OECD countries. The results show that countries that experienced rapid globalization enjoy social justice. When the KOF index of globalization increases by one standard deviation, the social justice indicator increases by about 0.4 points (on a scale from 1 to 10). The policy implication is that permitting a national economy to become globally integrated is consistent with and promotes social justice.JEL-Code: D630, F610.

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“…Indeed, while there is some evidence that rightwing economies have had a faster long-term rate of growth (Bjornskov 2005), that they hand out more stateaid (Röller and Neven, 2000), and that politics affect firm value (Knight 2007), evidence of the effects of political ideology on bureaucrat behavior in public procurement is scant.…”

Section: Introductionmentioning

confidence: 99%