State-Owned Enterprises, Inequality, and Political Ideology

Avsar, Veysel, Karayalcin, Cem and Ulubasoglu, Mehmet 2013, State-Owned Enterprises, Inequality, and Political Ideology, Economics & Politics, vol. 25, no. 3, pp. 387-410.

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Title State-Owned Enterprises, Inequality, and Political Ideology
Author(s) Avsar, Veysel
Karayalcin, Cem
Ulubasoglu, Mehmet
Journal name Economics & Politics
Volume number 25
Issue number 3
Start page 387
End page 410
Total pages 24
Publisher Blackwell Publishing
Place of publication Oxford, England
Publication date 2013
ISSN 0954-1985
Summary State-owned enterprises continue to play a considerable role in many economies. In this study we empirically investigate the connections between these enterprises and inequality as mediated through political ideology. Using cross-country data on the relative size of the state-owned enterprise sector, we find strong empirical support for an inverted U-shaped relationship between its size and income inequality. We also find strong evidence that left-wing (vis-a-vis right-wing) governments are associated with a larger state-owned enterprise sector in countries with higher inequality. This result is robust to using cross-sectional vs. panel data, different identification strategies, and various controls.
Language eng
Field of Research 140213 Public Economics- Public Choice
Socio Economic Objective 910106 Income Distribution
HERDC Research category C1 Refereed article in a scholarly journal
Copyright notice ©2013, Blackwell Publishing
Persistent URL http://hdl.handle.net/10536/DRO/DU:30061183

Document type: Journal Article
Collections: Faculty of Business and Law
School of Accounting, Economics and Finance
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