Political Instability, Investment and Economic Growth

Hadhek, Zouhaier (2019) Political Instability, Investment and Economic Growth. In: Emerging Issues and Development in Economics and Trade Vol. 2. B P International, pp. 143-151. ISBN 978-93-89562-55-2

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Abstract

The objective of this chapter is to identify the effect of political instability on investment and economic
growth. By using a dynamic balanced panel data model applied on annual data from 11 countries
from the Middle East and North Africa (MENA) region over the period of 2000 to 2009. The political
instability’ effect on the contribution of investment to economic growth has been the subject of a
second empirical study using a simultaneous equation model conducted on a sample of 33 countries
over the period 2000-2015.The main outcomes drawn by these two empirical tests prove that there is
no effect of political instability on investment and economic growth and a negative interaction between
political instability and investment. This finding confirms the idea that the importance of political
institutions lies in the preparation of good economic institutions. Thus, political institutions indirectly
influence economic performance.

Item Type: Book Section
Subjects: EP Archives > Social Sciences and Humanities
Depositing User: Managing Editor
Date Deposited: 28 Nov 2023 03:54
Last Modified: 28 Nov 2023 03:54
URI: http://research.send4journal.com/id/eprint/3341

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