Impact of macroeconomic conditions on government popularity: An ECOWAS investigation

Chun Ping Chang, Yung Hsiang Ying, Meng Chi Hsieh

Research output: Contribution to journalArticle

Abstract

A main focus of this paper is our analysis of the vote function using the vote share of government parties as the proxy variable for government popularity. Utilising Pedroni's (1999) panel cointegrated test and the fully modified OLS (FMOLS) technique, we empirically examine the long-run co-movement relationship in a bivariate model between government popularity and macroeconomic outcomes as well as a lag term in accordance with updated data for 11 countries of the Economic Community of West African States (ECOWAS) during the 1975-2005 period. The results indicate the existence of panel cointegration relationships in our empirical model. The panel FMOLS shows that several macroeconomic shocks are responsible for positive contributions to government popularity, especially in regard to economic growth and government expenditures. By contrast, currency depreciation, higher interest payments, and a greater taxation burden on households all contribute to lower government support in our sample countries. Based on such evidence, important policy implications emerge for ECOWAS.

Original languageEnglish
Pages (from-to)28-44
Number of pages17
JournalSouth African Journal of Economics
Volume77
Issue number1
DOIs
Publication statusPublished - 2009 Apr 17

Fingerprint

Africa
Macroeconomic conditions
Government
Economics
Vote
Macroeconomic shocks
Household
Policy implications
Payment
Comovement
Economic growth
Government expenditure
Taxation
Lag
Government support
Panel cointegration
Burden
Empirical model
Proxy variables
Macroeconomics

Keywords

  • Panel data approach
  • Performance of government
  • Popularity of government

ASJC Scopus subject areas

  • Economics and Econometrics

Cite this

Impact of macroeconomic conditions on government popularity : An ECOWAS investigation. / Chang, Chun Ping; Ying, Yung Hsiang; Hsieh, Meng Chi.

In: South African Journal of Economics, Vol. 77, No. 1, 17.04.2009, p. 28-44.

Research output: Contribution to journalArticle

@article{9e9d1a860891476eb40fc14f28984efe,
title = "Impact of macroeconomic conditions on government popularity: An ECOWAS investigation",
abstract = "A main focus of this paper is our analysis of the vote function using the vote share of government parties as the proxy variable for government popularity. Utilising Pedroni's (1999) panel cointegrated test and the fully modified OLS (FMOLS) technique, we empirically examine the long-run co-movement relationship in a bivariate model between government popularity and macroeconomic outcomes as well as a lag term in accordance with updated data for 11 countries of the Economic Community of West African States (ECOWAS) during the 1975-2005 period. The results indicate the existence of panel cointegration relationships in our empirical model. The panel FMOLS shows that several macroeconomic shocks are responsible for positive contributions to government popularity, especially in regard to economic growth and government expenditures. By contrast, currency depreciation, higher interest payments, and a greater taxation burden on households all contribute to lower government support in our sample countries. Based on such evidence, important policy implications emerge for ECOWAS.",
keywords = "Panel data approach, Performance of government, Popularity of government",
author = "Chang, {Chun Ping} and Ying, {Yung Hsiang} and Hsieh, {Meng Chi}",
year = "2009",
month = "4",
day = "17",
doi = "10.1111/j.1813-6982.2009.01207.x",
language = "English",
volume = "77",
pages = "28--44",
journal = "South African Journal of Economics",
issn = "0038-2280",
publisher = "Wiley-Blackwell",
number = "1",

}

TY - JOUR

T1 - Impact of macroeconomic conditions on government popularity

T2 - An ECOWAS investigation

AU - Chang, Chun Ping

AU - Ying, Yung Hsiang

AU - Hsieh, Meng Chi

PY - 2009/4/17

Y1 - 2009/4/17

N2 - A main focus of this paper is our analysis of the vote function using the vote share of government parties as the proxy variable for government popularity. Utilising Pedroni's (1999) panel cointegrated test and the fully modified OLS (FMOLS) technique, we empirically examine the long-run co-movement relationship in a bivariate model between government popularity and macroeconomic outcomes as well as a lag term in accordance with updated data for 11 countries of the Economic Community of West African States (ECOWAS) during the 1975-2005 period. The results indicate the existence of panel cointegration relationships in our empirical model. The panel FMOLS shows that several macroeconomic shocks are responsible for positive contributions to government popularity, especially in regard to economic growth and government expenditures. By contrast, currency depreciation, higher interest payments, and a greater taxation burden on households all contribute to lower government support in our sample countries. Based on such evidence, important policy implications emerge for ECOWAS.

AB - A main focus of this paper is our analysis of the vote function using the vote share of government parties as the proxy variable for government popularity. Utilising Pedroni's (1999) panel cointegrated test and the fully modified OLS (FMOLS) technique, we empirically examine the long-run co-movement relationship in a bivariate model between government popularity and macroeconomic outcomes as well as a lag term in accordance with updated data for 11 countries of the Economic Community of West African States (ECOWAS) during the 1975-2005 period. The results indicate the existence of panel cointegration relationships in our empirical model. The panel FMOLS shows that several macroeconomic shocks are responsible for positive contributions to government popularity, especially in regard to economic growth and government expenditures. By contrast, currency depreciation, higher interest payments, and a greater taxation burden on households all contribute to lower government support in our sample countries. Based on such evidence, important policy implications emerge for ECOWAS.

KW - Panel data approach

KW - Performance of government

KW - Popularity of government

UR - http://www.scopus.com/inward/record.url?scp=64349123845&partnerID=8YFLogxK

UR - http://www.scopus.com/inward/citedby.url?scp=64349123845&partnerID=8YFLogxK

U2 - 10.1111/j.1813-6982.2009.01207.x

DO - 10.1111/j.1813-6982.2009.01207.x

M3 - Article

AN - SCOPUS:64349123845

VL - 77

SP - 28

EP - 44

JO - South African Journal of Economics

JF - South African Journal of Economics

SN - 0038-2280

IS - 1

ER -