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Political Competition and Human Development: Evidence from the Indian States

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  • Bharatee Bhusana Dash
  • Sacchidananda Mukherjee

Abstract

Recently, it has been argued that political competition may have similar effects on economic performance as it does on market competition. This study empirically examines this proposition by linking political competition with the Human Development Index (HDI) of the Indian states. The findings suggest that politically-competitive governments perform well along the HDI. A more detailed analysis also shows that rural India benefits most from the intense political competition compared to urban India. We also found that if the same government rules a state for a relatively long period, it helps the state to achieve a higher HDI score. Increasing voter participation is found to be positively associated with HDI score, but this finding is confined to the sample of major Indian states. Increasing public spending on developmental activities is also found to have a positive and significant effect on HDI performance.

Suggested Citation

  • Bharatee Bhusana Dash & Sacchidananda Mukherjee, 2015. "Political Competition and Human Development: Evidence from the Indian States," Journal of Development Studies, Taylor & Francis Journals, vol. 51(1), pages 1-14, January.
    • Handle: RePEc:taf:jdevst:v:51:y:2015:i:1:p:1-14
    DOI: 10.1080/00220388.2014.947280
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    References listed on IDEAS

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    1. Anthony Downs, 1957. "An Economic Theory of Political Action in a Democracy," Journal of Political Economy, University of Chicago Press, vol. 65(2), pages 135-135.
    2. Damania, Richard & Yalcýn, Erkan, 2008. "Corruption and Political Competition," Economics Discussion Papers 2008-7, Kiel Institute for the World Economy (IfW Kiel).
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    Cited by:

    1. Michael Batu, 2017. "Poverty and the Colonial Origins of Elite Capture: Evidence from Philippine Provinces," Working Papers 1708, University of Windsor, Department of Economics.
    2. Stanley L. Winer & J. Stephen Ferris & Bharatee Bhusana Dash & Pinaki Chakraborty, 2021. "Political competitiveness and the private–public structure of public expenditure: a model and empirics for the Indian States," International Tax and Public Finance, Springer;International Institute of Public Finance, vol. 28(6), pages 1430-1471, December.
    3. Satya R. Chakravarty & Manipushpak Mitra & Suresh Mutuswami & Rupayan Pal, 2020. "On the probability ratio index as a measure of electoral competition," Palgrave Communications, Palgrave Macmillan, vol. 6(1), pages 1-6, December.
    4. Chatterjee, Somdeep & Mookerjee, Mehreen & Ojha, Manini & Roy, Sanket, 2023. "Does increased credibility of elections lead to higher political competition? Evidence from India," European Journal of Political Economy, Elsevier, vol. 77(C).
    5. Bharatee Bhusana, Ferris, J Stephen Dash & Stanley L. Winer, 2018. "Measuring Electoral Competitiveness: With Application to the Indian States," CESifo Working Paper Series 7216, CESifo.
    6. Mukherjee, Sacchidananda & Chakraborty, Debashis, 2016. "Do Public Policy Dynamics Stimulate Anti-Incumbency Waves? Results from Indian States," MPRA Paper 73010, University Library of Munich, Germany.
    7. Singh, Richa & Bhattacharjee, Sankalpa & Nandy, Amarendu, 2024. "Fiscal decentralization for the delivery of health and education in Indian states: An ongoing process is more desirable than a policy shift," Journal of Policy Modeling, Elsevier, vol. 46(2), pages 254-271.
    8. Sacchidananda Mukherjee & Debashis Chakraborty, 2017. "Can Economic Development Influence General Election Outcomes? Evidence from Consumption Expenditure Trends of Indian States," Journal of Development Policy and Practice, , vol. 2(2), pages 131-150, July.
    9. Somdeep Chatterjee & Pushkar Maitra & Manhar Manchanda, 2024. "The Relevant Third: Threat of Coalition and Economic Development," Monash Economics Working Papers 2024-13, Monash University, Department of Economics.
    10. Shreya Biswas & Upasak Das & Sandhya Garg, 2024. "Growing with greener pastures: Examining the role of graduate politicians on forest cover in India," IEG Working Papers 463, Institute of Economic Growth.
    11. Kailthya, Subham & Kambhampati, Uma, 2022. "Political competition and public healthcare: Evidence from India," World Development, Elsevier, vol. 153(C).
    12. Yuriy O. Gaivoronskiy, 2015. "The Influence of Political Competition on the Efficiency of the Regional Executives in Russia," HSE Working papers WP BRP 28/PS/2015, National Research University Higher School of Economics.
    13. Sacchidananda Mukherjee & Shivani Badola, 2021. "Public Financing of Human Development in India: A Review," Indian Journal of Human Development, , vol. 15(1), pages 62-81, April.
    14. Vivek JADHAV & Dr. Shrabani MUKHERJEE, 2024. "Nexus between political federalism, social diversity and human development in India," Theoretical and Applied Economics, Asociatia Generala a Economistilor din Romania / Editura Economica, vol. 0(1(638), S), pages 187-200, Spring.

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