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

17 June 2015
Publication Type: Policy Brief, Working Paper
JEL Code: D72, F43, O47, P16, R1

This paper examines the impact of political competition on economic growth. Using results from the 1994 and 1999 elections I show that municipalities with a decisive vote either for or against the dominant national party have grown faster than municipalities with more voter competition amongst various political parties. I show that in democracies, governments with more freedom to make decisions and less threat from opposition political parties are associated with faster economic growth and improvement in supply of some public goods.

Series title: Working paper 525
1 June 2015
Journal: South African Journal of Economics
26 November 2018
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