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Project Citation: 

Asher, Sam, and Novosad, Paul. Replication data for: Politics and Local Economic Growth: Evidence from India. Nashville, TN: American Economic Association [publisher], 2017. Ann Arbor, MI: Inter-university Consortium for Political and Social Research [distributor], 2019-10-12. https://doi.org/10.3886/E113667V1

Project Description

Summary:  View help for Summary Political favoritism affects the allocation of government resources, but is it consequential for growth? Using a close election regression discontinuity design and data from India, we measure the local economic impact of being represented by a politician in the ruling party. Favoritism leads to higher private sector employment, higher share prices of firms, and increased output as measured by night lights; the three effects are similar and economically substantive. Finally, we present evidence that politicians influence firms primarily through control over the implementation of regulation.

Scope of Project

Subject Terms:  View help for Subject Terms politics; economics; MLA; constituency; bias; growth; firms
JEL Classification:  View help for JEL Classification
      D72 Political Processes: Rent-seeking, Lobbying, Elections, Legislatures, and Voting Behavior
      L51 Economics of Regulation
      O17 Formal and Informal Sectors; Shadow Economy; Institutional Arrangements
      O18 Economic Development: Urban, Rural, Regional, and Transportation Analysis; Housing; Infrastructure
      O43 Institutions and Growth
      R11 Regional Economic Activity: Growth, Development, Environmental Issues, and Changes
Geographic Coverage:  View help for Geographic Coverage india
Time Period(s):  View help for Time Period(s) 1/1/1990 – 1/1/2005
Universe:  View help for Universe Aggregate constituency level data on all firms.
Data Type(s):  View help for Data Type(s) census/enumeration data; observational data; aggregate data
Collection Notes:  View help for Collection Notes For up to date and better documented versions of these data, users are encouraged to look at the SHRUG at www.devdatalab.org/shrug

Methodology

Data Source:  View help for Data Source Indian Economic Census, Election Commission of India
Unit(s) of Observation:  View help for Unit(s) of Observation legislative constituency,

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