Perception of political instability in election periods: Evidence from African firms
Antoine Cazals and
Florian Leon
Journal of Comparative Economics, 2023, vol. 51, issue 1, 259-276
Abstract:
Political instability is a major obstacle to firms' investment and development. This article investigates how elections affect the perception of political instability of African firms. We use a survey-based dataset of approximately 21,500 firms in 33 African countries which we cross with 237 elections between 2004 and 2020. Our econometric strategy allows a detailed identification of election periods and the associated effects. We provide robust evidence of a pre-election increase in the perception of political instability by firms, but no, or limited post-election effects. The perception of political instability by firms is stronger for firms oriented towards foreign markets, in countries with non-democratic institutions or a high risk of conflict.
Keywords: Firms; Perception of political instability; Elections; Africa (search for similar items in EconPapers)
Date: 2023
References: Add references at CitEc
Citations: View citations in EconPapers (1)
Downloads: (external link)
http://www.sciencedirect.com/science/article/pii/S0147596722000646
Full text for ScienceDirect subscribers only
Related works:
Working Paper: Perception of political instability in election periods: Evidence from African firms (2023)
This item may be available elsewhere in EconPapers: Search for items with the same title.
Export reference: BibTeX
RIS (EndNote, ProCite, RefMan)
HTML/Text
Persistent link: https://EconPapers.repec.org/RePEc:eee:jcecon:v:51:y:2023:i:1:p:259-276
DOI: 10.1016/j.jce.2022.09.003
Access Statistics for this article
Journal of Comparative Economics is currently edited by D. Berkowitz and G. Roland
More articles in Journal of Comparative Economics from Elsevier
Bibliographic data for series maintained by Catherine Liu (repec@elsevier.com).