Corruption and development. A comparative approach to socioeconomic and political dimensions worldwide

The present study investigates relevant economic, social and political dimensions of development worldwide, focusing on (apparent and latent) links between perceived corruption, economic and human development, government effectiveness and the quality of the political system taken as representative variables of countries\u2019 social systems. These variables were selected as the basic determinants of the level of overall development in a country, since combinations of these factors determine clusters of countries with different development patterns. The results of this study indicate that effective development policies require integrated strategies that incorporate efforts to reduce corruption and increase human development and government effectiveness. These strategies are sustainable in the long run when associated with institutional transformations. More specifically, if democracy is not consolidated and the political system is not grounded on the basis of freedom, socioeconomic development cannot be achieved and maintained in the long term, even with a high level of per-capita income

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 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

Political budget cycles and effects of the excessive deficit procedure: The case of Greece

We study the existence, magnitude, and determinants of political budget cycles in Greece over the past 40 years. We find that the Greek economy has been characterised by extensive electorally-motivated cycles, which are not typical of a developed country. However, we show that the corrective fiscal measures imposed by the European institutions in the face of the Greek debt crisis suppressed these pre-electoral fiscal policy manipulations. In particular, the imposition of the Excessive Deficit Procedure of the Stability and Growth Pact reduced the ability of domestic politicians to increase public deficits to the point where it eliminated, albeit only marginally, political budget cycles

Wheat Supply Response in Greece and The European Union Policy

This paper attempts to estimate the supply response for wheat production in Greek agriculture. In our analysis we use the rigorous cointegration and the error correction method, as it is superior to the generally used Nerlovian partial-adjustment model. Since wheat is one of the most important commodities in the Greek agriculture, comprising 26 percent of the total cultivated land, the estimation of its price responsiveness is vitally important in supporting agricultural policy decisions. The results of our analysis reveal that there is a long-term stable relationship between the supplied quantity of wheat and real gross revenue of wheat producers, suggesting that in order to raise wheat yield and farmer incomes, considering the European Union agricultural policy, productivity increases play a vital role. The government’s policy should therefore be channelled through measures that will encourage productivity increases.Greek agriculture, supply wheat response, co-integration, error correction model