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

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  • Nonso Obikili

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.

Suggested Citation

  • Nonso Obikili, 2019. "The Impact of Political Competition on Economic Growth: Evidence from Municipalities in South Africa," South African Journal of Economics, Economic Society of South Africa, vol. 87(1), pages 3-21, March.
    • Handle: RePEc:bla:sajeco:v:87:y:2019:i:1:p:3-21
    DOI: 10.1111/saje.12208
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    Cited by:

    1. Maddah, Majid & Ghaffari Nejad, Amir Hossein & Sargolzaei, Mostafa, 2022. "Natural resources, political competition, and economic growth: An empirical evidence from dynamic panel threshold kink analysis in Iranian provinces," Resources Policy, Elsevier, vol. 78(C).
    2. Chaudhry, Ahmed & Mazhar, Ummad, 2019. "Political competition and economic policy: Empirical evidence from Pakistan," Economics - The Open-Access, Open-Assessment E-Journal (2007-2020), Kiel Institute for the World Economy (IfW Kiel), vol. 13, pages 1-27.
    3. Leoné Walters & Manoel Bittencourt & Carolyn Chisadza, 2023. "Public infrastructure provision and ethnic favouritism: Evidence from South Africa," Economics of Transition and Institutional Change, John Wiley & Sons, vol. 31(1), pages 33-65, January.
    4. Chaudhry, Ahmed & Mazhar, Ummad, 2018. "Political competition and economic performance: Empirical evidence from Pakistan," Economics Discussion Papers 2018-27, Kiel Institute for the World Economy (IfW Kiel).

    More about this item

    JEL classification:

    • D72 - Microeconomics - - Analysis of Collective Decision-Making - - - Political Processes: Rent-seeking, Lobbying, Elections, Legislatures, and Voting Behavior
    • F43 - International Economics - - Macroeconomic Aspects of International Trade and Finance - - - Economic Growth of Open Economies
    • O47 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - Empirical Studies of Economic Growth; Aggregate Productivity; Cross-Country Output Convergence
    • P16 - Political Economy and Comparative Economic Systems - - Capitalist Economies - - - Capitalist Institutions; Welfare State
    • R1 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics

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