The effect of remittances prior to an election

Jean-Louis Combes, Mathilde Maurel and Christian Hubert Ebeke (cebeke@imf.org)

No 201307, Working Papers from CERDI

Abstract: This paper focuses on the relationships between remittances, elections, and government consumption as a percentage of GDP. We combine data from the National Elections across Democracy and Autocracy (NELDA) dataset compiled and discussed in Hyde and Marinov (2012) and the World Development Indicators dataset. We focus on 70 young democracies in the developing world. The period under investigation is 1990-2010. The main objective of the paper is to assess whether remittances have an influence on the political manipulation, which may occur prior to an election, through in increase in the government consumption-to-GDP-ratio. It appears that remittances dampen the political business cycle (PBC). Furthermore, the PBC is reduced up to the point where it is fully cancelled out at a remittance threshold of 10.7 percent of GDP. Those findings are robust to different econometric strategies and robustness checks.

Keywords: Political Business Cycles; Remittances (search for similar items in EconPapers)
JEL-codes: F2 F22 O15 (search for similar items in EconPapers)
Pages: 23
Date: 2013
New Economics Papers: this item is included in nep-mig, nep-pbe and nep-pol
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (4)

Published in Applied Economics, 2015, pages 4074-4089
Published in Applied Economics

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Related works:
Journal Article: The effect of remittances prior to an election (2015)
Working Paper: The effect of remittances prior to an election (2015)
Working Paper: he effect of remittances prior to an election (2015)
Working Paper: The effect of remittances prior to an election (2015)
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