IDEAS home Printed from https://ideas.repec.org/p/iza/izadps/dp8452.html
   My bibliography  Save this paper

Do Criminal Representatives Hinder or Improve Constituency Outcomes? Evidence from India

Author

Listed:
  • Prakash, Nishith

    (Northeastern University)

  • Rockmore, Marc

    (Clark University)

  • Uppal, Yogesh

    (Youngstown State University)

Abstract

The recent increase in the number of criminally accused politicians elected to state assemblies has caused much furor in India. Despite the potentially important consequences and the widely divergent views, the implications of their elections to state legislative assemblies on constituency-level economic performance are unknown. Using a regression discontinuity design and data on the intensity of night lights in satellite imagery at the constituency level, our results suggest that the cost of electing criminally accused politicians on measures of economic activity is quite large. Using estimates of the elasticity of GDP to light, we find that the election of criminally accused candidates lead to roughly 5 percent lower GDP growth per year on average. These estimated costs increase for candidates with serious accusations, multiple accusations, and accusations regarding financial crimes. Our result survives variety of robustness checks.

Suggested Citation

  • Prakash, Nishith & Rockmore, Marc & Uppal, Yogesh, 2014. "Do Criminal Representatives Hinder or Improve Constituency Outcomes? Evidence from India," IZA Discussion Papers 8452, Institute of Labor Economics (IZA).
  • Handle: RePEc:iza:izadps:dp8452
    as

    Download full text from publisher

    File URL: https://docs.iza.org/dp8452.pdf
    Download Restriction: no
    ---><---

    Other versions of this item:

    References listed on IDEAS

    as
    1. Claudio Ferraz & Frederico Finan & Diana Belo Moreira, 2009. "Corrupting Learning: Evidence from Missing Federal Education Funds in Brazil," Textos para discussão 562, Department of Economics PUC-Rio (Brazil).
    2. Raymond Fisman & Florian Schulz & Vikrant Vig, 2014. "The Private Returns to Public Office," Journal of Political Economy, University of Chicago Press, vol. 122(4), pages 806-862.
    3. Yogesh Uppal, 2009. "The disadvantaged incumbents: estimating incumbency effects in Indian state legislatures," Public Choice, Springer, vol. 138(1), pages 9-27, January.
    4. Stephen Ansolabehere & James M. Snyder, 2006. "Party Control of State Government and the Distribution of Public Expenditures," Scandinavian Journal of Economics, Wiley Blackwell, vol. 108(4), pages 547-569, December.
    5. Timothy Besley & Robin Burgess, 2004. "Can Labor Regulation Hinder Economic Performance? Evidence from India," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 119(1), pages 91-134.
    6. Claudio Ferraz & Frederico Finan, 2008. "Exposing Corrupt Politicians: The Effects of Brazil's Publicly Released Audits on Electoral Outcomes," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 123(2), pages 703-745.
    7. J. Vernon Henderson & Adam Storeygard & David N. Weil, 2012. "Measuring Economic Growth from Outer Space," American Economic Review, American Economic Association, vol. 102(2), pages 994-1028, April.
    8. Bhalotra, Sonia R. & Clots-Figueras, Irma & Iyer, Lakshmi, 2013. "Path-Breakers: How Does Women's Political Participation Respond to Electoral Success?," IZA Discussion Papers 7771, Institute of Labor Economics (IZA).
    9. Ritva Reinikka & Jakob Svensson, 2004. "Local Capture: Evidence from a Central Government Transfer Program in Uganda," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 119(2), pages 679-705.
    10. Bhalotra, Sonia & Clots-Figueras, Irma & Cassan, Guilhem & Iyer, Lakshmi, 2014. "Religion, politician identity and development outcomes: Evidence from India," Journal of Economic Behavior & Organization, Elsevier, vol. 104(C), pages 4-17.
    11. Asim Ijaz Khwaja & Atif Mian, 2005. "Do Lenders Favor Politically Connected Firms? Rent Provision in an Emerging Financial Market," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 120(4), pages 1371-1411.
    12. Sheetal Sekhri & Sriniketh Nagavarapu, 2013. "Less Is More? Implications of Regulatory Capture for Natural Resource Depletion," Virginia Economics Online Papers 408, University of Virginia, Department of Economics.
    13. Bhalotra, Sonia & Clots-Figueras, Irma & Iyer, Lakshmi, 2013. "Path-Breakers: How Does Women’s Political Participation Respond to Electoral Success?," Economics Discussion Papers 9008, University of Essex, Department of Economics.
    14. Frank Bickenbach & Eckhardt Bode & Peter Nunnenkamp & Mareike Söder, 2016. "Night lights and regional GDP," Review of World Economics (Weltwirtschaftliches Archiv), Springer;Institut für Weltwirtschaft (Kiel Institute for the World Economy), vol. 152(2), pages 425-447, May.
    15. Ferraz, Claudio & Finan, Frederico & Moreira, Diana B., 2012. "Corrupting learning," Journal of Public Economics, Elsevier, vol. 96(9-10), pages 712-726.
    16. Axel Dreher & Thomas Herzfeld, 2005. "The Economic Costs of Corruption: A Survey and New Evidence," Public Economics 0506001, University Library of Munich, Germany.
    17. David Albouy, 2013. "Partisan Representation in Congress and the Geographic Distribution of Federal Funds," The Review of Economics and Statistics, MIT Press, vol. 95(1), pages 127-141, March.
    18. Sandip Sukhtankar, 2012. "Sweetening the Deal? Political Connections and Sugar Mills in India," American Economic Journal: Applied Economics, American Economic Association, vol. 4(3), pages 43-63, July.
    19. Baskaran, Thushyanthan & Min, Brian & Uppal, Yogesh, 2015. "Election cycles and electricity provision: Evidence from a quasi-experiment with Indian special elections," Journal of Public Economics, Elsevier, vol. 126(C), pages 64-73.
    20. Pranab Bardhan, 1997. "Corruption and Development: A Review of Issues," Journal of Economic Literature, American Economic Association, vol. 35(3), pages 1320-1346, September.
    21. McCrary, Justin, 2008. "Manipulation of the running variable in the regression discontinuity design: A density test," Journal of Econometrics, Elsevier, vol. 142(2), pages 698-714, February.
    22. Sam Asher & Paul Novosad, 2017. "Politics and Local Economic Growth: Evidence from India," American Economic Journal: Applied Economics, American Economic Association, vol. 9(1), pages 229-273, January.
    23. Paolo Mauro, 1995. "Corruption and Growth," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 110(3), pages 681-712.
    24. repec:esx:essedp:740 is not listed on IDEAS
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Gehring, Kai & Kauffeldt, T. Florian & Vadlamannati, Krishna Chaitanya, 2019. "Crime, incentives and political effort: Evidence from India," European Journal of Political Economy, Elsevier, vol. 59(C), pages 1-20.
    2. Chanda, Areendam & Kabiraj, Sujana, 2020. "Shedding light on regional growth and convergence in India," World Development, Elsevier, vol. 133(C).
    3. Krishnan, Pramila & Dhillon, Amrita & Patnam, Manasa & Perroni, Carlo, 2016. "Electoral Accountability and the Natural Resource Curse: Theory and Evidence from India," CEPR Discussion Papers 11377, C.E.P.R. Discussion Papers.
    4. Dhillon, Amrita & Krishnan, Pramila & Patnam, Manasa & Perroni, Carlo, 2016. "The Natural Resource Curse Revisited:Theory and Evidence from India," CAGE Online Working Paper Series 268, Competitive Advantage in the Global Economy (CAGE).
    5. Shabana Mitra & Althaf Shajahan, 2022. "Crime, elections, and political competition," Review of Development Economics, Wiley Blackwell, vol. 26(4), pages 2394-2413, November.
    6. Saibal Ghosh, 2018. "An index of legislators’ performance: evidence from Indian parliamentary data," Journal of Social and Economic Development, Springer;Institute for Social and Economic Change, vol. 20(1), pages 129-151, April.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Prakash, Nishith & Rockmore, Marc & Uppal, Yogesh, 2019. "Do criminally accused politicians affect economic outcomes? Evidence from India," Journal of Development Economics, Elsevier, vol. 141(C).
    2. Thushyanthan Baskaran & Sonia Bhalotra & Brian Min & Yogesh Uppal, 2024. "Women legislators and economic performance," Journal of Economic Growth, Springer, vol. 29(2), pages 151-214, June.
    3. Lehne, Jonathan & Shapiro, Jacob N. & Vanden Eynde, Oliver, 2018. "Building connections: Political corruption and road construction in India," Journal of Development Economics, Elsevier, vol. 131(C), pages 62-78.
    4. Jain, Chandan & Kashyap, Shagun & Lahoti, Rahul & Sahoo, Soham, 2023. "The impact of educated leaders on economic development: Evidence from India," Journal of Comparative Economics, Elsevier, vol. 51(3), pages 1068-1093.
    5. Jain, Chandan & Kashyap, Shagun & Lahoti, Rahul & Sahoo, Soham, 2022. "Do Educated Leaders Affect Economic Development? Evidence from India," IZA Discussion Papers 15278, Institute of Labor Economics (IZA).
    6. Sam Asher & Paul Novosad, 2017. "Politics and Local Economic Growth: Evidence from India," American Economic Journal: Applied Economics, American Economic Association, vol. 9(1), pages 229-273, January.
    7. Friedman, Willa, 2018. "Corruption and averting AIDS deaths," World Development, Elsevier, vol. 110(C), pages 13-25.
    8. Baskaran, Thushyanthan & Bhalotra, Sonia R. & Min, Brian & Uppal, Yogesh, 2018. "Women Legislators and Economic Performance," IZA Discussion Papers 11596, Institute of Labor Economics (IZA).
    9. Auriol, Emmanuelle & Straub, Stéphane & Flochel, Thomas, 2016. "Public Procurement and Rent-Seeking: The Case of Paraguay," World Development, Elsevier, vol. 77(C), pages 395-407.
    10. Oana Borcan & Mikael Lindahl & Andreea Mitrut, 2017. "Fighting Corruption in Education: What Works and Who Benefits?," American Economic Journal: Economic Policy, American Economic Association, vol. 9(1), pages 180-209, February.
    11. Armand, Alex & Coutts, Alexander & Vicente, Pedro C. & Vilela, Inês, 2023. "Measuring corruption in the field using behavioral games," Journal of Public Economics, Elsevier, vol. 218(C).
    12. Makkar, Karan, 2023. "Defector Politicians and Economic Growth: Evidence from India," European Journal of Political Economy, Elsevier, vol. 79(C).
    13. Krisztina Kis-Katos & Günther G. Schulze, 2013. "Corruption in Southeast Asia: a survey of recent research," Asian-Pacific Economic Literature, The Crawford School, The Australian National University, vol. 27(1), pages 79-109, May.
    14. 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.
    15. Benjamin Marx & Vincent Pons & Vincent Rollet, 2022. "Electoral Turnovers," NBER Working Papers 29766, National Bureau of Economic Research, Inc.
    16. Yan Leung Cheung & P. Raghavendra Rau & Aris Stouraitis, 2012. "How much do firms pay as bribes and what benefits do they get? Evidence from corruption cases worldwide," NBER Working Papers 17981, National Bureau of Economic Research, Inc.
    17. Colonnelli, Emanuele & Lagaras, Spyridon & Ponticelli, Jacopo & Prem, Mounu & Tsoutsoura, Margarita, 2022. "Revealing corruption: Firm and worker level evidence from Brazil," Journal of Financial Economics, Elsevier, vol. 143(3), pages 1097-1119.
    18. Fang, Hanming & Gu, Quanlin & Zhou, Li-An, 2019. "The gradients of power: Evidence from the Chinese housing market," Journal of Public Economics, Elsevier, vol. 176(C), pages 32-52.
    19. Emran, M. Shahe & Islam, Asadul & Shilpi, Forhad, 2013. "Admission is free only if your dad is rich! distributional effects of corruption in schools in developing countries," Policy Research Working Paper Series 6671, The World Bank.
    20. Chen, Minghua & Jeon, Bang Nam & Wang, Rui & Wu, Ji, 2015. "Corruption and bank risk-taking: Evidence from emerging economies," Emerging Markets Review, Elsevier, vol. 24(C), pages 122-148.

    More about this item

    Keywords

    regression discontinuity; information disclosure; Indian politicians; growth; India;
    All these keywords.

    JEL classification:

    • D72 - Microeconomics - - Analysis of Collective Decision-Making - - - Political Processes: Rent-seeking, Lobbying, Elections, Legislatures, and Voting Behavior
    • D73 - Microeconomics - - Analysis of Collective Decision-Making - - - Bureaucracy; Administrative Processes in Public Organizations; Corruption
    • O40 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - General
    • O12 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Microeconomic Analyses of Economic Development

    NEP fields

    This paper has been announced in the following NEP Reports:

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:iza:izadps:dp8452. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Holger Hinte (email available below). General contact details of provider: https://edirc.repec.org/data/izaaade.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.