Proportionality Degree of Electoral Systems and Growth: A Panel Data Test

Previous empirical studies analysing the effect of electoral systems on growth lack unanimous answers as they miss-specify mixed systems in the empirical setting, that is, they neglect to consider the proportionality degree of electoral systems. This work supplies the missing answers by properly dis...

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Bibliographic Details
Published in:Review of law & economics 2015-03, Vol.11 (1), p.51-78
Main Authors: Alfano, Maria Rosaria, Baraldi, Anna Laura
Format: Article
Language:English
Subjects:
Accountability
C23
D72
economic growth
Elections
electoral system
Electoral systems
GDP
Gross Domestic Product
Longitudinal studies
Panel data
proportionality index
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Summary:Previous empirical studies analysing the effect of electoral systems on growth lack unanimous answers as they miss-specify mixed systems in the empirical setting, that is, they neglect to consider the proportionality degree of electoral systems. This work supplies the missing answers by properly distinguishing the electoral rules using the Gallagher proportionality index. We estimate a non-linear relationship between the Gallagher proportionality index and the per capita GDP growth using cross-country panel data. Our findings show that the proportionality degree is significant for growth; mixed systems (characterized by an intermediate level of proportionality), combining the different advantages of both proportional and plurality systems, solve the problem of the accountability–responsiveness and the political–government instability trade-offs. As a consequence, they reach relatively higher growth rates with respect to more “extreme” electoral rules.
ISSN:2194-6000
1555-5879
DOI:10.1515/rle-2015-0005