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The influence of economic disparities of regions on political polarization in Czech Republic

Author

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  • Ondrej Rolnik

    (Department of Economics, Faculty of Business and Economics, Mendel University in Brno, Zemedelska 1, 613 00 Brno, Czech Republic)

Abstract

The aim of the paper is to prove a hypothesis concerning the causality of economic well-being and political polarization in the state. The causality is proven in all regions of the Czech Republic on the observed data set, from 1993 to the present. The evidence was provided by expressing the economic well-being by three indicators, i.e., gross domestic product per capita, unemployment and disposable income per capita in combination with the development of a created polarization index. This index depends on the left-right ideological party division combined with election results in the Chamber of Deputies of the Parliament of the Czech Republic for regional districts. Socio-demographic indicators of the development of individual regions were used as control variables. These include, the average state of the population, the share of university-educated people in the average state of the population, age indicators, the population density of a given region, or voter turnout in a given election year. The most important variable of the economic well-being influencing the development of polarization is the disposable income of households. The proof is accomplished by quantitative economic analysis using the Least Squares Method.

Suggested Citation

  • Ondrej Rolnik, 2022. "The influence of economic disparities of regions on political polarization in Czech Republic," MENDELU Working Papers in Business and Economics 2022-84, Mendel University in Brno, Faculty of Business and Economics.
    • Handle: RePEc:men:wpaper:84_2022
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    References listed on IDEAS

    as
    1. Nicole Fuentes & Mariano Rojas, 2001. "Economic Theory and Subjective Well-being: Mexico," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 53(3), pages 289-314, March.
    2. Atif Mian & Amir Sufi & Francesco Trebbi, 2014. "Resolving Debt Overhang: Political Constraints in the Aftermath of Financial Crises," American Economic Journal: Macroeconomics, American Economic Association, vol. 6(2), pages 1-28, April.
    3. Hetherington, Marc J., 2001. "Resurgent Mass Partisanship: The Role of Elite Polarization," American Political Science Review, Cambridge University Press, vol. 95(3), pages 619-631, September.
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    More about this item

    Keywords

    polarization; politics; economic well-being; Czech Republic; gross domestic product; disposable income; unemployment; political economics;
    All these keywords.

    JEL classification:

    • D72 - Microeconomics - - Analysis of Collective Decision-Making - - - Political Processes: Rent-seeking, Lobbying, Elections, Legislatures, and Voting Behavior
    • E61 - Macroeconomics and Monetary Economics - - Macroeconomic Policy, Macroeconomic Aspects of Public Finance, and General Outlook - - - Policy Objectives; Policy Designs and Consistency; Policy Coordination
    • I31 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - General Welfare, Well-Being
    • P16 - Political Economy and Comparative Economic Systems - - Capitalist Economies - - - Capitalist Institutions; Welfare State

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