This article provides a novel test of political party influence on economic development.

Data & Methods

Using annual data from over 150 countries between 1901 and 2010 sourced from the Varieties of Democracy dataset,

an original empirical approach quantifies party strength effects across diverse governance systems.

Key Mechanisms

• Broader policy responsiveness to societal interests

• Improved politician coordination capabilities

• Enhanced economic management efficiency

• Strengthened public service delivery

• Increased political stability potential

Findings & Significance

Strong parties significantly impact economic outcomes, regardless of democracy or autocracy.

The effect remains robust across various specifications, estimators, and subsamples.

Contrary to some expectations, the relationship holds steady across regions and time periods.