Domestic vs. External Economic Sectors and the Political Process: Insights from Greece
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 presen...
| Main Authors: | , , , , |
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| Format: | Article |
| Language: | English |
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MDPI AG
2022-08-01
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| Series: | Economies |
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| Online Access: | https://www.mdpi.com/2227-7099/10/8/198 |
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| author | George Petrakos Kostas Rontos Luca Salvati Chara Vavoura Ioannis Vavouras |
| author_facet | George Petrakos Kostas Rontos Luca Salvati Chara Vavoura Ioannis Vavouras |
| author_sort | George Petrakos |
| collection | DOAJ |
| description | 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. |
| first_indexed | 2024-03-09T09:58:47Z |
| format | Article |
| id | doaj.art-db6ddb3c27a54b3eae545c70ba5bb58e |
| institution | Directory Open Access Journal |
| issn | 2227-7099 |
| language | English |
| last_indexed | 2024-03-09T09:58:47Z |
| publishDate | 2022-08-01 |
| publisher | MDPI AG |
| record_format | Article |
| series | Economies |
| spelling | doaj.art-db6ddb3c27a54b3eae545c70ba5bb58e2023-12-01T23:37:46ZengMDPI AGEconomies2227-70992022-08-0110819810.3390/economies10080198Domestic vs. External Economic Sectors and the Political Process: Insights from GreeceGeorge Petrakos0Kostas Rontos1Luca Salvati2Chara Vavoura3Ioannis Vavouras4Department of Public Administration, Panteion University, 136 Syngrou Avenue, EL-17671 Athens, GreeceDepartment of Sociology, University of the Aegean, University Hill, EL-81100 Mytilene, GreeceDepartment of Methods and Models for Economics, Territory and Finance, Sapienza University of Rome, Via del Castro Laurenziano 9, I-00161 Rome, ItalyDepartment of Economics, National and Kapodistrian University of Athens, 1 Sofokleous Str., EL-10559 Athens, GreeceDepartment of Public Administration, Panteion University, 136 Syngrou Avenue, EL-17671 Athens, GreeceBuilding 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.https://www.mdpi.com/2227-7099/10/8/198political budget cycleselectoral cycleseconomic destabilizationinternational trade |
| spellingShingle | George Petrakos Kostas Rontos Luca Salvati Chara Vavoura Ioannis Vavouras Domestic vs. External Economic Sectors and the Political Process: Insights from Greece Economies political budget cycles electoral cycles economic destabilization international trade |
| title | Domestic vs. External Economic Sectors and the Political Process: Insights from Greece |
| title_full | Domestic vs. External Economic Sectors and the Political Process: Insights from Greece |
| title_fullStr | Domestic vs. External Economic Sectors and the Political Process: Insights from Greece |
| title_full_unstemmed | Domestic vs. External Economic Sectors and the Political Process: Insights from Greece |
| title_short | Domestic vs. External Economic Sectors and the Political Process: Insights from Greece |
| title_sort | domestic vs external economic sectors and the political process insights from greece |
| topic | political budget cycles electoral cycles economic destabilization international trade |
| url | https://www.mdpi.com/2227-7099/10/8/198 |
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