Volume 20, Issue 4 (1-2016)                   JPBUD 2016, 20(4): 3-30 | Back to browse issues page

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Shahabadi A, Nilforoushan N, Khaleghi M. (2016). The Effect of Political Cycle on Unemployment Growth Rate in Selected Developed and Developing Countries. JPBUD. 20(4), 3-30.
URL: http://jpbud.ir/article-1-1226-en.html
1- Bu-Ali Sina University , shahabadi@basu.ac.ir
2- Shiraz University
3- Raghab Esfahan Universtiy
Abstract:   (6670 Views)
During the last few decades, the study of the effect of non-economic variables in the economy has become a prominent subject matter for the researchers. One of the most important issue in these cases are the effects of elections (as a political phenomenon) on the economic variables, which in the economic literature is referred to as the political cycle. Thus, in this study, by using panel data for 29 selected countries (in two groups including the developed and developing countries) during the period 1994-2011, we attempt to evaluate the effects of political cycles (indicators include: the year of the election, the minority government, coalitions, government ideology) on the unemployment growth rate. To investigate this, generalized least square (GLS) and generalized method of moments (GMM) techniques have been used. Based on the results, candidates of each country irrespective of their ideology (left wing or right wing) try to gain a greater number of people's vote by increasing job opportunities, reducing unemployment and promoting the business environment. Furthermore, the variables of the minority government and coalitions have significant influence (respectively positive and negative effect) on the growth of unemployment rate in developing countries(unlike the cases of the developed countries).
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Type of Study: Research |
Received: Jul 15 2015 | Accepted: Jan 17 2017 | ePublished: Jan 17 2017

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