How Does Political Instability Affect Economic Growth?

How Does Political Instability Affect Economic Growth?
Author: Mr.Ari Aisen
Publisher: International Monetary Fund
Total Pages: 30
Release: 2011-01-01
Genre: Business & Economics
ISBN: 1455211907

The purpose of this paper is to empirically determine the effects of political instability on economic growth. Using the system-GMM estimator for linear dynamic panel data models on a sample covering up to 169 countries, and 5-year periods from 1960 to 2004, we find that higher degrees of political instability are associated with lower growth rates of GDP per capita. Regarding the channels of transmission, we find that political instability adversely affects growth by lowering the rates of productivity growth and, to a smaller degree, physical and human capital accumulation. Finally, economic freedom and ethnic homogeneity are beneficial to growth, while democracy may have a small negative effect.

Democracy, Governance, and Economic Performance

Democracy, Governance, and Economic Performance
Author: Yi Feng
Publisher: MIT Press
Total Pages: 408
Release: 2003
Genre: Business & Economics
ISBN: 9780262562119

A theoretical and empirical examination of why political institutions and organizations matter in economic growth.

The Political Dimension of Economic Growth

The Political Dimension of Economic Growth
Author: Silvio Borner
Publisher: Springer
Total Pages: 403
Release: 1998-04-12
Genre: Political Science
ISBN: 1349262846

The state and its institutions are crucial for economic development: for better and for worse. This insight informs this important, up-to-date and authoritative survey of new trends in growth economics and the widely divergent economic performance of developing countries - for example, between Latin America and South-east Asia - which seemed to be similarly placed just a generation ago. The decisive role of the political dimension in economic growth seems clear but there are many challenges to be met in getting an analytical handle on the precise determinants and in testing empirically for this. This is the challenge taken up by the international team of contributors.

The Dynamic Effect of Social and Political Instability on Output

The Dynamic Effect of Social and Political Instability on Output
Author: Mr.Lorenzo E. Bernal-Verdugo
Publisher: International Monetary Fund
Total Pages: 41
Release: 2013-04-23
Genre: Business & Economics
ISBN: 1484339266

The aim of this paper is to analyze the dynamic effect of social and political instability on output. Using a panel of up to 183 countries from 1980 to 2010, the results of the paper suggest that social conflicts have a significant and negative impact on output in the short-term with the magnitude of the effect being a function of the intensity of political instability. The results also show that the recovery of output over the medium-term depends on the ability of the country to implement, in the aftermath of a social instability episode, reforms aimed at improving the level of governance. The results are robust to different checks and estimation strategies.

The Political Economy of Good Governance

The Political Economy of Good Governance
Author: Sisay Asefa
Publisher: W.E. Upjohn Institute
Total Pages: 182
Release: 2015-06-08
Genre: Political Science
ISBN: 0880994983

A notable group of social scientists explore the political economy of good governance and how it relates to performance management, the influence of political parties, education and health issues in developing countries, the economic performance of transition economies, and the effects of climate on poverty.

Impacts of Political Instability on Economics in the MENA Region

Impacts of Political Instability on Economics in the MENA Region
Author: Philippe Zgheib
Publisher: Information Science Reference
Total Pages: 0
Release: 2019
Genre: Business & Economics
ISBN: 9781522582496

Political instability can harm economic performance and is likely to shorten policymakers' horizons, leading to sub-optimal short-term macroeconomic policies. This instability can also lead to a more frequent switch of policies, creating volatility and negatively affecting macroeconomic performance. Impacts of Political Instability on Economics in the MENA Region explores the results of financing challenges and strategies surrounding political unrest that center around the MENA region, as well as opportunities these challenges create for businesses and governments. Featuring research on topics such as debt, macroeconomics, and economic reform, this book is ideally designed for economists, investors, managers, multinational companies, policymakers, government officials, academicians, researchers, and advanced-level students furthering their research exposure to economic instability in the world today.

Marketing Sovereign Promises

Marketing Sovereign Promises
Author: Gary W. Cox
Publisher: Cambridge University Press
Total Pages: 237
Release: 2016-05-09
Genre: Business & Economics
ISBN: 1107140625

This book offers a new theory of state growth, based on the creation of credible and prudent state budgets.

The Oxford Handbook of the Quality of Government

The Oxford Handbook of the Quality of Government
Author: Andreas Bågenholm
Publisher: Oxford University Press
Total Pages: 881
Release: 2021-07-20
Genre: Political Science
ISBN: 0191899003

Recent research demonstrates that the quality of public institutions is crucial for a number of important environmental, social, economic, and political outcomes, and thereby human well-being. The Quality of Government (QoG) approach directs attention to issues such as impartiality in the exercise of public power, professionalism in public service delivery, effective measures against corruption, and meritocracy instead of patronage and nepotism. This Handbook offers a comprehensive, state-of-the-art overview of this rapidly expanding research field and also identifies viable avenues for future research. The initial chapters focus on theoretical approaches and debates, and the central question of how QoG can be measured. A second set of chapters examines the wealth of empirical research on how QoG relates to democratization, social trust and cohesion, ethnic diversity, happiness and human wellbeing, democratic accountability, economic growth and inequality, political legitimacy, environmental sustainability, gender equality, and the outbreak of civil conflicts. The remaining chapters turn to the perennial issue of which contextual factors and policy approaches—national, local, and international—have proven successful (and not so successful) for increasing QoG. The Quality of Government approach both challenges and complements important strands of inquiry in the social sciences. For research about democratization, QoG adds the importance of taking state capacity into account. For economics, the QoG approach shows that in order to produce economic prosperity, markets need to be embedded in institutions with a certain set of qualities. For development studies, QoG emphasizes that issues relating to corruption are integral to understanding development writ large.

Coalition Politics and Economic Development

Coalition Politics and Economic Development
Author: Irfan Nooruddin
Publisher: Cambridge University Press
Total Pages: 267
Release: 2010-12-02
Genre: Political Science
ISBN: 1139494023

Coalition Politics and Economic Development challenges the conventional wisdom that coalition government hinders necessary policy reform in developing countries. Irfan Nooruddin presents a fresh theory that institutionalized gridlock, by reducing policy volatility and stabilizing investor expectations, is actually good for economic growth. Successful national economic performance, he argues, is the consequence of having the right configuration of national political institutions. Countries in which leaders must compromise to form policy are better able to commit credibly to investors and therefore enjoy higher and more stable rates of economic development. Quantitative analysis of business surveys and national economic data together with historical case studies of five countries provide evidence for these claims. This is an original analysis of the relationship between political institutions and national economic performance in the developing world and will appeal to scholars and advanced students of political economy, economic development and comparative politics.