Shades of red and blue: government ideology and sustainable development
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We study the effect of government ideology on sustainable development, measured as investment in genuine wealth, in a dynamic panel of 79 countries between 1981 and 2013. We find robust and statistically significant evidence that genuine investment grows faster under right-wing governments than under left-wing or center governments. In contrast, we find no indication of opportunistic cycles.
KeywordsSustainable development Government ideology Political cycles Genuine investment
JEL ClassificationC23 D72 I31 O15
The authors acknowledge the helpful comments and suggestions from the participants at the 23rd International Academic Conference of the International Institute of Social and Economic Sciences, Venice International University, Venice, Italy, 27–30 April 2016; the participants at the 10th Annual Meeting of the Portuguese Economic Journal, University of Coimbra, Portugal, 1–3 July 2016; and the participants at the 2017 annual Meeting of the European Public Choice Society, Central European University, Budapest, Hungary, 19–22 April. Vitor Castro also wishes to thank the financial support provided by the Portuguese Foundation for Science and Technology under the research grant SFRH/BSAB/113588/2015 (partially funded by COMPTE, QREN and FEDER).
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