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Does political capital make a difference in GDP per capita? A fuzzy logic to estimate the political capital index

Author

Listed:
  • Hoda Zobeiri

    (University of Mazandaran)

  • Zahra Poulaei

    (Department of Economic Sciences, University of Mazandaran)

Abstract

The purpose of this paper is to investigate the effect of political capital on GDP per capita. Political capital is the ability of citizens to influence the political system. Increasing economic stability depends on political capital, which improves macroeconomic variables, leading to the efficiency and productivity of production factors, thus increasing GDP per capita. In this study, the political capital index is estimated based on the combination of three indicators of social capital, political participation, and democracy using fuzzy logic method. Then, we measured the impact of political capital on GDP per capita for 38 selected developing and developed countries during 2007–2017 using the dynamic generalized method of moments (GMM). The result shows that political capital has a positive significant effect on GDP per capita.

Suggested Citation

  • Hoda Zobeiri & Zahra Poulaei, 2023. "Does political capital make a difference in GDP per capita? A fuzzy logic to estimate the political capital index," Quality & Quantity: International Journal of Methodology, Springer, vol. 57(1), pages 919-932, February.
    • Handle: RePEc:spr:qualqt:v:57:y:2023:i:1:d:10.1007_s11135-022-01399-5
    DOI: 10.1007/s11135-022-01399-5
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    More about this item

    Keywords

    Political capital; Institutions; GDP per capita; Dynamic panel; Fuzzy method;
    All these keywords.

    JEL classification:

    • O43 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - Institutions and Growth
    • E71 - Macroeconomics and Monetary Economics - - Macro-Based Behavioral Economics - - - Role and Effects of Psychological, Emotional, Social, and Cognitive Factors on the Macro Economy
    • C23 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Models with Panel Data; Spatio-temporal Models
    • C26 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Instrumental Variables (IV) Estimation

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