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The political determinants of government spending allocation and growth

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  • Batzilis, Dimitris

Abstract

I study the allocation of spending, and the impact of politics on regional growth in Greece, using a large dataset that covers the period between 1959 and 2010. I find that electoral districts that vote for the majority party and are represented by majority MPs receive more spending from the central government, and grow faster. Districts do not seem to enjoy any additional benefits when their elected representatives also occupy positions in the executive branch of the government.

Suggested Citation

  • Batzilis, Dimitris, 2020. "The political determinants of government spending allocation and growth," Research in Economics, Elsevier, vol. 74(3), pages 213-220.
    • Handle: RePEc:eee:reecon:v:74:y:2020:i:3:p:213-220
    DOI: 10.1016/j.rie.2020.07.001
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    1. Lee, Frances E., 2000. "Senate Representation and Coalition Building in Distributive Politics," American Political Science Review, Cambridge University Press, vol. 94(1), pages 59-72, March.
    2. Andrés Rodríguez-Pose & Yannis Psycharis & Vassilis Tselios, 2012. "Public investment and regional growth and convergence: Evidence from Greece," Papers in Regional Science, Wiley Blackwell, vol. 91(3), pages 543-568, August.
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    6. Alvarez, R Michael & Saving, Jason L, 1997. "Congressional Committees and the Political Economy of Federal Outlays," Public Choice, Springer, vol. 92(1-2), pages 55-73, July.
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    9. Lauren Cohen & Joshua D. Coval & Christopher Malloy, 2010. "Do Powerful Politicians Cause Corporate Downsizing?," NBER Working Papers 15839, National Bureau of Economic Research, Inc.
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    1. Fernando Antonio Ignacio González & Lara Sofia Cantero & Pablo Ariel Szyszko, 2022. "Favoritismo Regional en Argentina," Working Papers 199, Red Nacional de Investigadores en Economía (RedNIE).

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