Political competition and economic performance: evidence from Indonesia

This paper analyses the impact of political competition on economic performance in Indonesia. study uses a database covering 427 districts Indonesia, from 2000 to 2013. Political is measured using Herfindahl Hirschman Concentration Index for district parliament election. variable potentially endogenous, because likely be non-random and correlated with unobservable variables. To solve this problem, I use lag average within same province as instrumental competition. The degree boosts real Regional Gross Domestic Product (RGDP) per capita RGDP growth by 0.7 0.6%, respectively. also finds that stiffer associated lower own source revenue, higher non agricultural share, Human Development (HDI).