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Picking Winners at the Ballot Box: Votes and Local Economic Growth in Turkey

Davide Luca ()
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Davide Luca: London School of Economics

No 1232, Working Papers from Economic Research Forum

Abstract: While there is systematic evidence of how governments affect policy outputs for strategic reasons, a limited amount of studies has assessed whether these distortions are consequential for economic growth. Using data from Turkey over the period 2004-2013, the current paper measures the effect of voting for the national incumbent party on local economic performance. New instrumental variable estimates suggest that provinces where the electoral race for the Justice and Development Party (AKP) was closer have experienced faster per-capita GVA and employment growth rates. The effect is economically substantive and increases in election years. Results also provide evidence that the government has affected growth through the selective provision of state goods.

New Economics Papers: this item is included in nep-ara, nep-cwa, nep-pol and nep-ure
Date: 2018-10-10, Revised 2018-10-10
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