Politics and Consumer Prices in Africa

Asongu, Simplice

Politics and Consumer Prices in Africa

MPRA Paper from University Library of Munich, Germany

Abstract: The motivations of the Arab Spring that have marked the history of humanity over the last few months have left political economists, researchers, governments and international policymakers pondering over how the quality of political institutions affect consumer welfare in terms of commodity prices. This paper investigates the effect of political establishments on consumer prices in the African continent. Findings suggest that in comparison with authoritarian regimes, democracies better provide for institutions that keep inflationary pressures on commodity prices in check. As a policy implication, improving the quality of democratic institutions will ameliorate consumer welfare through lower inflation rates. Such government quality institutional determinants include, among others: voice and accountability, rule of law, regulation quality, control of corruption and press freedom.

Keywords: Consumer prices; Political institutions; Welfare; Africa (search for similar items in EconPapers)
JEL-codes: I30 O1 P00 P50 Q00 (search for similar items in EconPapers)
Date: 2012-01-25
New Economics Papers: this item is included in nep-afr, nep-dev and nep-pol
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (4)

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Related works:
Working Paper: Politics and Consumer Prices in Africa (2012)
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Persistent link: https://EconPapers.repec.org/RePEc:pra:mprapa:36174

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