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Proportionality Degree of Electoral Systems and Growth: A Panel Data Test

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  • Alfano Maria Rosaria

    (Dipartimento di Economia, Seconda Università di Napoli, C.so Gran Priorato di Malta, 81043 Capua, Italy)

  • Baraldi Anna Laura

    (Dipartimento di Economia, Seconda Università di Napoli, C.so Gran Priorato di Malta, 81043 Capua, Italy)

Abstract

Previous empirical studies analysing the effect of electoral systems on growth lack unanimous answers as they miss-specify mixed systems in the empirical setting, that is, they neglect to consider the proportionality degree of electoral systems. This work supplies the missing answers by properly distinguishing the electoral rules using the Gallagher proportionality index. We estimate a non-linear relationship between the Gallagher proportionality index and the per capita GDP growth using cross-country panel data. Our findings show that the proportionality degree is significant for growth; mixed systems (characterized by an intermediate level of proportionality), combining the different advantages of both proportional and plurality systems, solve the problem of the accountability–responsiveness and the political–government instability trade-offs. As a consequence, they reach relatively higher growth rates with respect to more “extreme” electoral rules.

Suggested Citation

  • Alfano Maria Rosaria & Baraldi Anna Laura, 2015. "Proportionality Degree of Electoral Systems and Growth: A Panel Data Test," Review of Law & Economics, De Gruyter, vol. 11(1), pages 51-78, March.
    • Handle: RePEc:bpj:rlecon:v:11:y:2015:i:1:p:51-78:n:5
    DOI: 10.1515/rle-2015-0005
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    References listed on IDEAS

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    1. Philippe Aghion, 2005. "Growth and Institutions," Empirica, Springer;Austrian Institute for Economic Research;Austrian Economic Association, vol. 32(1), pages 3-18, March.
    2. Torsten Persson & Guido Tabellini, 2005. "The Economic Effects of Constitutions," MIT Press Books, The MIT Press, edition 1, volume 1, number 0262661926, April.
    3. Acemoglu, Daron & Johnson, Simon & Robinson, James A., 2005. "Institutions as a Fundamental Cause of Long-Run Growth," Handbook of Economic Growth, in: Philippe Aghion & Steven Durlauf (ed.), Handbook of Economic Growth, edition 1, volume 1, chapter 6, pages 385-472, Elsevier.
    4. Alesina, Alberto & Özler, Sule & Roubini, Nouriel & Swagel, Phillip, 1996. "Political Instability and Economic Growth," Journal of Economic Growth, Springer, vol. 1(2), pages 189-211, June.
    5. Manuel Arellano & Stephen Bond, 1991. "Some Tests of Specification for Panel Data: Monte Carlo Evidence and an Application to Employment Equations," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 58(2), pages 277-297.
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    More about this item

    Keywords

    economic growth; electoral system; proportionality index;
    All these keywords.

    JEL classification:

    • C23 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Models with Panel Data; Spatio-temporal Models
    • D72 - Microeconomics - - Analysis of Collective Decision-Making - - - Political Processes: Rent-seeking, Lobbying, Elections, Legislatures, and Voting Behavior
    • H1 - Public Economics - - Structure and Scope of Government

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