European Political Economy Research Papers (original) (raw)

This paper investigates and explains the cross-country pattern in the 1999 corruption index from Transparency International. The economic part of the model has four variables: the level and growth of real income per capita, the inflation... more

- by MARTIN PALDAM
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- Economics, Applied Economics, Corruption, European Political Economy
- by Lars Feld
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- Economic Growth, Judicial independence, Applied Economics, European Political Economy
- by Branko Milanovic
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- Direct Democracy, Income Distribution, Applied Economics, Income inequality
- by TOCHUKWU EFOCHI
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- Terrorism, Applied Economics, European Political Economy, Event Study

First MIT Press paperback edition, 1991 © 1989 Massachusetts Institute of Technology All rights reserved. No part of this book may be reproduced in any form by any electronic or mechanical means (including photocopying, recording, or... more

- by Bradford Lee
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- Marketing, Economics, Applied Economics, Interdisciplinary History
- by António Afonso
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- Economic Growth, Fiscal policy, Applied Economics, European Political Economy

Anecdotal evidence relates corruption with high levels of military spending. This paper tests empirically whether such a relationship exists. The empirical analysis is based on data from four different sources for up to 120 countries during 1985–1998. The association between military spending and corruption is investigated by using cross-section and panel regression techniques. The results suggest that corruption is associated with higher military spending as a share of both GDP and total government spending, as well as with arms procurement in relation to GDP and total government spending. The results can be interpreted as evidence that defense spending may be used as a component of an indicator of the quality of governance.

- by Magda Chorvatova
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- Applied Economics, Panel Data, Corruption, European Political Economy
- by J. Von Hagen and +1
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- Applied Economics, Financial Crisis, Risk Aversion, European Political Economy

Recent studies show that corruption is associated with higher military spending [Eur. J. Polit. Econ. 17 (2001) 794] and lower government spending on education and health care [J. Publ. Econ. 69 (1998) 263]. This suggests that policies aimed at reducing corruption may lead to changes in the composition of government outlays toward more productive spending. However, little empirical evidence has been presented to support the claim that public spending improves education and health indicators in developing and transition countries. This paper uses cross-sectional data for 50 such countries to show that increased public expenditure on education and health care is associated with improvements in both access to and attainment in schools, and reduces mortality rates for infants and children. The education regressions are robust to different specifications, but the relationship between health care spending and mortality rates is weaker.

- by Salma Shalawani
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- Applied Economics, European Political Economy
- by Andreas Bergh
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- Globalization, Applied Economics, Panel Data, Income inequality
- by S Brock Blomberg
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- Political Economy, Terrorism, Institutional Change, Applied Economics
- by Arye Hillman
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- Economics, Rhetoric, Welfare State, Political Science
- by James Gwartney
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- Property Rights, Regulation, Applied Economics, European Political Economy
- by Jan Potters
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- Applied Economics, Interest Groups, European Political Economy, Political Power
- by Laszlo Goerke
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- Applied Economics, European Political Economy
- by Sjak Smulders
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- Environmental policy, Economic Growth, Applied Economics, General Equilibrium
- by Jan Fidrmuc
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- Economic Growth, Applied Economics, European Political Economy, Economic Reform
- by zerihun Asegid
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- Resource Allocation, Applied Economics, European Political Economy
- by Mehmet Ulubasoglu
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- Economic Growth, Applied Economics, Panel Data, European Political Economy

The paper explores the determinants of foreign direct investment (FDI) in Sudan over the period (1970–2010). The study considers the market size, inflation rate, exchange rate, indirect taxes, trade openness, and investment incentive policy as factors influencing FDI. The study uses the cointegration and error-correction techniques to identify the short- and long-run dynamics of the FDI determinants. The Johansen cointegration test statistics indentify four cointegrating relations among the series, which implies an existence of long-run relationship among the FDI determinants. The results of the long-run FDI equation indicate that FDI flows in Sudan are influenced by the market size, inflation rate, exchange rate, and investment incentive policy. The error-correction term suggests that approximately 17% of total disequilibrium in FDI flows was being corrected each year. Moreover, Granger causality results show that there is a unidirectional causality running from each of the exchange rate, investment incentive policy, and the market size to FDI.

- by Hisham Hassan
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- Services, International Business, Foreign Direct Investment, European Union
- by Magnus Henrekson
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- Political Economy, Economic Growth, Public sector, Applied Economics
- by Rafael Repullo
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- Marketing, Economics, Econometrics, Economic Theory
- by Pranab Bardhan and +1
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- Applied Economics, European Political Economy, Development theory, New institutional economics
- by Friedrich G Schneider and +1
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- Economic Development, Applied Economics, European Political Economy, European

An examination of the short- and long-term relation between government spending and output in 51 developing countries reveals evidence consistent with cyclical ratcheting and voracity reflected in a tendency for government spending to increase over time. The main components of government spending are procyclical in some 40% of countries. Output and government spending are cointegrated for at least one of the spending aggregates in 70% of countries, implying a long-term relationship between government spending and output consistent with Wagner's law. In contrast, prior studies have found only weak support for Wagner's law for developing countries, although somewhat stronger support for industrial countries.

- by Gabriela Inchauste
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- Applied Economics, Developing Country, European Political Economy, European

Corruption inhibits economic growth ([Mauro, 1995], [Mauro, 1998], [Bliss and Di Tella, 1997], [Mo, 2001], [Del Monte and Papagni, 2001] and [Méndez and Sepùlveda, 2006]), reduces the legitimacy of government in the eyes of the governed,... more

- by E. Papagni
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- Public Administration, Social Capital, Applied Economics, Corruption
- by Abid A
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- Applied Economics, Tax Evasion, European Political Economy, Sample Survey
- by Rina Bhattacharya
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- Terrorism, Armed Conflict, Applied Economics, Growth
- by Justina Fischer
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- Quality of life, Economic Development, Applied Economics, Life Satisfaction
- by Douglas Nelson
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- Economics, Political Economy, Applied Economics, European Political Economy
- by Santiago Lago-Peñas
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- Applied Economics, Tax Burden, Tax Compliance, Tax Morale
- by Axel Dreher
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- Applied Economics, European Political Economy, Economic freedom, Indexation

We test the relationship between aggregate press freedom and corruption performing a modified extreme bounds analysis. We also test the relation among different forms of restrictions to press freedom using previously unexplored... more

- by M. Emranul Haque
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- Applied Economics, European Political Economy

This paper provides a systematic analysis of fiscal decentralization on the quality of government by studying jointly its effects on electoral discipline and selection, in a setting where, realistically, voters only have limited information about fiscal policy in other jurisdictions, ruling out yardstick competition. Fiscal centralization reduces the extent of electoral discipline, as a corrupt (rent-seeking) incumbent can target good

- by Jean Hindriks
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- Fiscal Federalism, Information Structure, Fiscal policy, Applied Economics
- by Lars Feld
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- Political Culture, Economic policy, Direct Democracy, Applied Economics
- by Hans Pitlik
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- Market Orientation, Applied Economics, European Political Economy, Economic Reform
- by John Thornton
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- Oil and gas, Applied Economics, European Political Economy, Natural Resource
- by Massimo Bordignon
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- Business, Finance, Economics, Fiscal Federalism
- by Kjell Hausken
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- Evolutionary Psychology, Evolutionary Economics, Political Economy, Economic Theory
- by Thomas Moutos
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- Political Economy, Applied Economics, Political Economics, Bureaucracy
- by Julia Tokatlidou
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- Applied Economics, European Political Economy, Rent Seeking, Group Size
- by Gabriela Inchauste
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- Economics, Development Economics, Fiscal policy, Applied Economics