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Political and Business Cycles: Interferences and Socio-Economic Implications in Romania and Republic of Moldova

Percic Stanislav (), Marius Apostoaie and Ulian Galina ()
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Percic Stanislav: Alexandru Ioan Cuza University of Iaºi, Romania
Ulian Galina: Moldova State University, Republic of Moldova

Ovidius University Annals, Economic Sciences Series, 2014, vol. XIV, issue 1, 163-168

Abstract: The electoral instability falls into the continuous shifts in paradigms, systems, values and economic performance which countries around the world still experience. We believe it is common sense that the election process in a democratic country has an important impact (even a manipulation effect) on its economy. In this context, this paper aims to test the interferences between the political cycle and the business cycle in Romania and Republic of Moldova. The paper aims to verify if the government has an expansionist policy before the elections, which leads to a lower level of taxes and unemployment and contributes, at the same time, to the increase of the consumption per inhabitant, of the GDP and of the subventions granted by the government, followed by a restrictive one.

Keywords: business cycle; political cycle; inflation; unemployment; economic growth (search for similar items in EconPapers)
JEL-codes: D72 E32 E52 E61 (search for similar items in EconPapers)
Date: 2014
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