Electoral competition and economic development: evidence from Pakistan

In recent years, many commentators have challenged the idea that democratic institutions are more conducive to economic growth and development. In this paper, we contribute to the literature by studying the impact of electoral competition on the provision of public goods at local levels in Pakistan from 1992 to 2018. Using data on electoral competition provided by Election Commission of Pakistan and data on local economic development proxied by nighttime light data, and applying ordinary least square (OLS) technique, our findings suggest that electoral competition improves the provision of public goods. Baseline estimates show an increase in nighttime light intensity by around 9%–11% in electorally competitive constituencies than non-competitive constituencies, corresponding to an increase in local GDP of around 2.7%–3.4%.