Political Economy of Budget Allocation According to Parliamentary Position of Iran’s Islamic Consultative Assembly’s Members; Using Analytical Hierarchy Process (AHP) Approach

Document Type : Research Paper

Authors

1 Department of Economics, Faculty of Economics and Administrative Science, Ferdowsi University of Mashhad, Iran

2 Associate Professor, Department of Economics, Faculty of Economics and Administrative Science, Ferdowsi University of Mashhad, Iran

3 Assistant Professor, Department of Economics, Faculty of Economics and Administrative Science, Ferdowsi University of Mashhad, Iran.

4 Assistant Professor, Department of Economics, Faculty of Economics and Administrative Science, Ferdowsi University of Mashhad, Iran

Abstract

The country's annual budget is known as the most important component of macro-economic planning which should be prepared, approved and implemented in line with the goals of the upstream documents like five-year development plans. However, due to the competitive nature of the budget and the conflict of interests in budgeting system, this coordination does not happen. This article focuses on the incentives and role of MPs in exacerbating this deviation during the process of approving the budget. Therefore, according to political economy literature of parliamentary positions and the motivations of the representatives, we identify five positions that are effective on the budget approval process and use the Analysis Hierarchy Process (AHP) to determine the coefficient of these positions. Then by specifying a regression model based on the positions and characteristics variables of the representatives as well as the economic capacity of the province for the 9th and 10th periods of the Islamic Council (1391-1398), show that except for the seniority, parliamentary positions, partisanship and the number of provincial parliamentary seats have a positive and significant effect on the increase of the construction budget of the province. Therefore, in Iran’s parliamentary organization context, Committee Interests and Partisanship theories are confirmed.

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