Domestic vs. External Economic Sectors and the Political Process: Insights from Greece

Autor: George Petrakos, Kostas Rontos, Luca Salvati, Chara Vavoura, Ioannis Vavouras
Jazyk: angličtina
Rok vydání: 2022
Předmět:
Zdroj: Economies, Vol 10, Iss 8, p 198 (2022)
Druh dokumentu: article
ISSN: 10080198
2227-7099
DOI: 10.3390/economies10080198
Popis: Building on the well-established relationship between economic dynamics and political processes, we focus on the most important element of the political process, namely, general (or national) elections, and look into their effects on public finance and total economic output. In this vein, the present study has three objectives: (i) to investigate political budget cycles in Greece during the period known as the ‘Third Hellenic Republic’ (in Greek, ‘Metapolitefsi’, hereafter THR) since 1974; (ii) to assess whether national elections affect total economic activity in a stabilizing or destabilizing way; and (iii) to examine the possible effects of the external sector of the economy on the budget balance. The empirical findings of our analysis document how the Greek economy was characterized by sharp political budget cycles in correspondence with the THR, exerting a destabilizing effect on the total output of the economy. Performances of the external sector of the economy have significantly affected budget balances in Greece.
Databáze: Directory of Open Access Journals
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