The effect of election outcome on economic activity: a tale of two countries
Year: 2024
Type: article
Abstract: This paper investigates the effect of partisan politics on macroeconomic performance in France and the United Kingdom between 1971 and 2023. Using a panel autoregressive distributed lag (ARDL) model, the analysis examines whether ideological divides between left-and right-wing parties and coalition governments are associated with accountability for key macroeconomic indicators. I find suggestive evidence that economic growth is slightly lower under the left-wing governments, whereas unemployment and inflation rates are higher with a statistically significant differences of 10% for inflation. The impact of right-wing policies has greater impact on reducing inflation Furthermore, coalition governments underperform on growth and unemployment, with a significant struggle to stimulate economic expansion Finally, despite the characterisation of political parties as either right or left leaning in terms of cultural matters, their implemented policies seem to yield comparable economic outcomes.
Source: Economics and Business Letters
Author: Amr Saber Algarhi
Institution: Sheffield Hallam University
Language: English
Subfield: Economics and Econometrics
Domain: Social Sciences
Open Access status: diamond
OpenAlex ID: W4404755444