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Political alternation as a restraint on investing in influence : evidence from the post-communist transition

Author:	Milanovic, Branko; Hoff, Karla; Horowitz, Shale;	Collection Title:	Policy Research working paper ; no. WPS 4747Paper is funded by the Knowledge for Change Program (KCP)
Country:	World;	Date Stored:	2008/10/06
Document Date:	2008/10/01	Document Type:	Policy Research Working Paper
Language:	English	Major Sector:	Public Administration, Law, and Justice
Rel. Proj ID:	CN-Research Program On Poverty And Inequality -- -- P079124;	Region:	The World Region
Report Number:	WPS4747	Sub Sectors:	General public administration sector
SubTopics:	Governance Indicators; Public Sector Corruption & Anticorruption Measures; Emerging Markets; National Governance; Parliamentary Government	TF No/Name:	TF053492-KCP:EVALUATING; TF030646-SPANISH CTF - FY05 (CHINA, PHILIPPINES, & VIETNAM/ALL SECTORS & THEMES)
Volume No:	1 of 1

Summary: The authors develop and implement a method for measuring the frequency of changes in power among distinct leaders and ideologically distinct parties that is comparable across political systems. The authors find that more frequent alternation in power is associated with the emergence of better governance in post communist countries. The results are consistent with the hypothesis that firms seek durable protection from the state, which implies that expected political alternation is relevant to the decision whether to invest in influence with the governing party or, alternatively, to demand institutions that apply predictable rules, with equality of treatment, regardless of the party in power.


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