Assessing the Impact of Campaign Finance on Party System Institutionalization

Abstract

There are numerous advantages to institutionalized party systems; yet the instability in post-communist party systems has been well documented. Thus, it is increasingly important to understand how parties become institutionalized. Scholars have examined various dynamics of campaign finance’s effect on politics; however, despite this increased attention, several important theoretical and empirical questions remain. In this article, we investigate campaign finance, institutional, and economic explanations for post-communist party development. We test the impact of campaign finance restrictions and public fund availability on several measures of party institutionalization. The results of our analysis are important for outlining the role of public financing and restrictions on structuring party development.