Political economy of restructuring of enterprises and electorial results in Serbia

Abstract

The aim of the paper is to explore both theoretically and empirically (using data from 2000 and 2007 parliamentary elections) the relations between political support and political decisions on the restructuring of the real sector of Serbian economy. Solving of the econometric problems, particularly the problem of the omitted variables, produced thorough regression models that provided explanation of the election results. It was demonstrated that restructuring of the real sector enterprises did not undermine the political support of the pro-reform political parties - in reality there are no political obstacles to restructuring, these are the products of wrong perception of the politicians. It was also demonstrated that noneconomic factors have had, comparing to the economic, stronger impact on the voters behavior in Serbia. .