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Politics and Investment: Examining the Territorial Allocation of Public Investment in Greece

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  • Andrés Rodríguez-Pose
  • Yannis Psycharis
  • Vassilis Tselios

Abstract

Rodríguez-Pose A., Psycharis Y. and Tselios V. Politics and investment: examining the territorial allocation of public investment in Greece, Regional Studies. This paper discusses how electoral politics shapes the regional allocation of public investment expenditures per capita in Greece. Using regional public investment data for ten political periods (1975–2009), combined with electoral data by constituency, a model is proposed that captures the influence of politics on the regional distribution of public investment expenditures. The results of the analysis point to a strong relationship between electoral results and regional public investment spending. Greek governing parties have tended to reward those constituencies returning them to office. Moreover, an increase in both the absolute and the relative electoral returns of the governing party in a region has traditionally been followed by greater public investment per capita in that region. Regions where the governing party (whether Liberal or Socialist) has held a monopoly of seats have been the greatest beneficiaries of this type of pork-barrel politics.

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  • Andrés Rodríguez-Pose & Yannis Psycharis & Vassilis Tselios, 2016. "Politics and Investment: Examining the Territorial Allocation of Public Investment in Greece," Regional Studies, Taylor & Francis Journals, vol. 50(7), pages 1097-1112, July.
    • Handle: RePEc:taf:regstd:v:50:y:2016:i:7:p:1097-1112
    DOI: 10.1080/00343404.2015.1009027
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    More about this item

    JEL classification:

    • H77 - Public Economics - - State and Local Government; Intergovernmental Relations - - - Intergovernmental Relations; Federalism
    • H50 - Public Economics - - National Government Expenditures and Related Policies - - - General
    • R12 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Size and Spatial Distributions of Regional Economic Activity; Interregional Trade (economic geography)
    • R58 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Regional Government Analysis - - - Regional Development Planning and Policy
    • Z18 - Other Special Topics - - Cultural Economics - - - Public Policy

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