The Impact of Political Competition on Economic Growth: Evidence from Municipalities in South Africa

Nonso Obikili

South African Journal of Economics, 2019, vol. 87, issue 1, 3-21

Abstract: This paper examines the impact of political competition on economic growth. In this paper, I show that internal political dynamics, distinct from the type of political system, can having different effects on growth. Using results from the 1994 and 1999 elections in South Africa, I show that municipalities with higher levels of political competition have shown lower levels of economic growth. I use individual level surveys to show that this political competition is associated with political paralysis, dissatisfaction with the current democracy and government and lower optimism about the future.

Date: 2019
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