This research is an empirical effort to uncover the causal effect of political attitudes on economic growth. The case of study is a sample of OECD countries. Using identification strategy borrowed from Cahuc (2010), the hypothesis of the effect of political attitudes on economic growth is tested in two cross-sectional and fixed effect regression analysis. The result of OLS regression in cross sectional analysis shows a positive significant correlation between inherited political attitudes and economic growth. This means that countries with more social tendencies towards Right (versus Left in political context) are associated with higher economic growth rates. The result of OLS regression in fixed-effect analysis does not show a significant correlation between political attitudes and growth. As a result of weak first-stage, the 2SLS regression cannot provide statistically acceptable conclusion about the causal effect in neither of cross-sectional and fixed-effect frameworks. Thus, the question of causal effect of political attitudes on growth remains open at the end. Moreover, a strong correlations between political attitudes of individuals and their characteristics like gender, age, income, religion and country is detected.
| Identifer | oai:union.ndltd.org:UPSALLA1/oai:DiVA.org:lnu-107052 |
| Date | January 2021 |
| Creators | Ghorbani Chenari, Behnam |
| Publisher | Linnéuniversitetet, Institutionen för nationalekonomi och statistik (NS) |
| Source Sets | DiVA Archive at Upsalla University |
| Language | English |
| Detected Language | English |
| Type | Student thesis, info:eu-repo/semantics/bachelorThesis, text |
| Format | application/pdf |
| Rights | info:eu-repo/semantics/openAccess |
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